Retail turnover in July rose by 0.1% from a year ago, and against June the increase amounted to 2.2% in seasonally adjusted terms, according to data announced by the National Statistics Institute (INS).
Michael Weiss, a vice-president with A.T.Kearney, one of the largest international management consultancies, doubts that this slight increase may signal a rebound. “A consumption increase of just 0.1% on a market such as Romania, in a summer month, is too small to signal a rally or even stabilization”.
Weiss also says the company’s research indicates a major risk for consumption to decline in Romania in the fourth quarter, not just on the rising number of bad loans, but also on the shrinking shopping budget.
The retail increase is modest, but the signal is positive as it comes after declines of 5-8% against 2010. The increase also comes amid rising salaries.
The net average salary has advanced by 8.6% in the past year, to 1,471 lei (EUR350), according to INS data. “It is normal for the salary average to go up after employees with smaller salaries were laid off and the high salaries left in the company are divided against a smaller number of employees,” said Daniela Necefor, a managing partner with Total Business Solutions executive search firm.
As regards lending, July saw the upward trend continue, for the fourth consecutive month, with the advance of private lending in real terms reaching 1.5% against the previous month.
(English version by Catalina Apostoiu; Editing by Radu Bostan)