Growth in retail sales, turnover in key sectors accelerates

ANKARA

Annual growth in retail sales and the combined turnover of the industry, trade, construction and services sectors gained momentum, data from the Turkish Statistics Institute (TÜİK) have shown.

Retail sales volume at constant prices grew 31 percent in July from a year ago, quickening from the 29 percent increase recorded in the previous month.

On a monthly basis, retail sales were up 2.7 percent after rising only 0.2 percent in June.

Food, drinks and tobacco products sales rose 19 percent from July 2022, easing from June’s 27 percent year-on-year rise.

The annual increase in non-food retail sales, on the other hand, accelerated from 33 percent in June to 42 percent in July.

Electronic goods and furniture recorded strong 63 percent year-on-year and 12 percent month-on-month increases in sales. Textile and clothing sales were up 13.4 percent from a year ago, but they declined 0.1 percent compared with June.

Orders by mail and online sales leaped more than 61 percent in July, TÜİK data also showed.

Curbs on credit cards, loans

Retail sales data came shortly after Finance Minister Mehmet Şimşek suggested earlier this week that measures will be taken to curb loan growth because of loans’ adverse effects on inflation and current account deficit. He particularly singled out the growth in credit card expenditures.

Data from the Central Bank show that credit card spending soared 140 percent as of Sept. 1 from a year ago. Card payments at supermarkets and shopping centers leaped nearly 102 percent year-on-year.

In a bid to curb spending, authorities may reduce the instalments on credit cards and introduce a cap on increasing card limits, daily Hürriyet reported.

Authorities may also consider additional measures regarding overdraft accounts. In July, interest rates on overdraft accounts were lifted. Regulators are likely to reconsider those interest rates, according to the daily.

Turnover in sectors spike

Separate data from TÜİK showed on Sept. 12 that the index of the combined turnover of the industry, construction, trade and services sectors advanced 77 percent in July annually after recording a 54 percent rise in June.

In industry, turnover grew by 63 percent, while the year-on-year increases in the construction and trade sectors were 117 percent and 85 percent, respectively.

The services sector saw its turnover increase by 72 percent from July 2022.

The combined turnover of those four sectors rose by 11.2 percent in July from the previous month, acceleration from June’s 6.4 percent month-on-month increase.