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Quick Comment: Portuguese Economy – August retail sales, volumes, +3.1%YoY, o/w Food: -1.2% (nominal +1.8%) surprised…

All in all, Retail sales data, volumes +3.1%YoY, below 12MMA moving averages, o/w non-Food, +7.0%YoY above moving averages and Food sales -1.2% (nominal +1.8% and seasonally adjusted +2.8), below moving averages.  

The Portuguese Statistic Institute (INE) has just released August’s Retail Sales data.  

We would highlight the following:

• Retail sales deflated raw data (without service stations and car sales): +3.1%YoY vs. 12MMA (12 month moving average) +4.8% and 3MMA +3.1%;
• Non-food Retail sales deflated raw data (without service stations and car sales): +7.0%YoY vs. 12MMA +6.7% and 3MMA +5.4%;
• Food Sales, deflated raw data: -1.2%YoY vs. 12MMA +2.7% and 3MMA +0.5%;
• Nominal Food sales (raw data): +1.8%YoY vs. 12MMA +5.7% and 3MMA +3.5%;
• Clothes, Shoes & Textile (nominal raw data): +5.2%YoY vs. 12MMA: +5.9% and 3MMA: +5.0%;
• Household goods (nominal raw data): 12.0%YoY vs. 12MMA: +6.6% and 3MMA: 8.9%;

• Mail and Internet retail (nominal raw data): +13.9%YoY vs. 12MMA: 5.7% and 3MMA: 9.4%.

Separately, Spanish Internet sales, in euros in August (data released yesterday), +11.2%YoY vs. 12MMA: 12.6% and 3MMA: 10.2%

Our comments: Retail sales in August, volumes, +3.1%YoY; o/w Food -1.2% and Non-Food +7.0%; surprised mainly because non-Food +7%YoY, above moving averages, while Food: -1.2%, below moving averages (seasonality probably explains 1%).

Summing up, figures slightly below 12MMA average, however, was mainly Food data, negative growth (adjusted data was smaller -0.3%YoY, but still negative), very unusual, even nominal data +1.8YoY was weaker (adjusted +2.8%). Clearly, an unexpected tough month to food retailers. Finally, internet sales in August, double digit growth both in Portugal and Spain.     

Source: INE, Eurostat, AS Independent Research