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All in all, Retail sales data, volumes +4.7%YoY, below moving averages points to some weakness, namely non-Food, +6.7%YoY (Food: +2.4%YoY). However, retail sales, volumes growing around mid-single digit, after strong oil price increase and slightly higher interest rates, remains a positive performance. Finally, Food sales nominal +6.3%YoY and volumes +2.4%, shows Food inflation remains high, while volumes improved after April’s weakness, partially related with Easter seasonality.          

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

We would highlight the following:

• Retail sales deflated raw data (without service stations and car sales): +4.7%YoY vs. 12MMA (12 month moving average) +5.7% and 3MMA +5.7%;
• Non-food Retail sales deflated raw data (without service stations and car sales): +6.7%YoY vs. 12MMA +7.3% and 3MMA +9.3%;
• Food Sales, deflated raw data: +2.4%YoY vs. 12MMA +4.0% and 3MMA +1.7%;
• Nominal Food sales (raw data): +6.3%YoY vs. 12MMA +6.8% and 3MMA +5.8%;
• Clothes, Shoes & Textile (nominal raw data): +11.3%YoY vs. 12MMA: +6.1% and 3MMA: +9.2%;
• Household goods (nominal raw data): 10.7%YoY vs. 12MMA: +5.0% and 3MMA: 13.7%;

• Mail and Internet retail (nominal raw data): 14.8%YoY vs. 12MMA: 3.3% and 3MMA: 14.4%.

Separately, Spanish Internet sales, in euros in May (data released today), +11.0%YoY vs. 12MMA: 13.8% and 3MMA: 12.3%

Our comments: Retail sales in May, volumes, +4.7%YoY; o/w Food +2.4% and Non-Food +6.7%. So, figures slightly on the weak side, namely non-Food, +6.7%; below moving averages. Even so, Retail sales growing around mid-single digit, after strong oil price impact, remains a positive performance. Meanwhile, Food sales improved, +2.4%; while nominal data, +6.3%YoY, continues to point to high Food inflation.       

Source: INE, Eurostat, AS Independent Research