Czech Republic's retail sales should erase March’s loss

Czech retail sales (excluding cars) should add 1.1% mom (SWDA) in April, confirming strong consumer demand. Although consumer confidence in April decreased to its low since November of last year, Continuous improvements is seen in Czech labour market conditions and strong growth in household consumption. The steadily declining unemployment rate and muted price growth ensure strengthening of consumer purchasing power. 
Wage growth in the industrial production and construction sectors is steadily growing, providing yet another support for households. 

"Car sales should decline in April by 1.5% mom, offsetting growth in March. New car registrations decreased for a second month in a row (on SA basis), suggesting lower sales. Overall, retail sales should increase 0.3% mom which corresponds to 7.0% yoy growth. Domestic demand became the key driver of the economic growth and retail sales is likely to perform this year adding 6.2%", said Societe Generale in a report on Friday.