Retail sales in Croatia increased by 1.3% in September 2015 compared with September 2014, which is the 14th month in a row that public consumption has been growing, according to figures released by the National Bureau of Statistics (DZS) on Tuesday.
Compared with September 2014, retail sales in September 2015 decreased in nominal terms by 0.3%, but increased by 1.3% in real terms. This was faster growth than in August 2015 when retail sales had increased by 0.9% year on year.
Four economic analysts polled by Hina had forecast an increase of 1.8% on average, their projections ranging from 1.5% to 2.5%.
A further increase in retail sales was suggested by improvements in the consumer confidence index, analysts at Raiffeisebank Austria said in their comment on the DZS report, adding that the increase in disposable income and the successful tourist season were additional factors underpinning further recovery.
They, however, noted that in the absence of stronger economic activity and job creation, personal consumption was unlikely to become the main generator of economic growth in the medium term and that it would follow a recovery driven by foreign demand.
The increase in retail sales in September implies solid growth in the third quarter in comparison with the same period last year, by 2.3%, which will make a positive contribution to growth in this quarter, the RBA analysts said.