In July 2018, retail spending in Croatia went up by 0.2 percent on the month, and 2.2 percent compared to July 2017, rising for the 47th consecutive month, and at a faster pace than June, the national statistics bureau (DZS) reported on Thursday.

This is a faster rate compared to June, when spending went up by 1.8 percent on the year.

This is the first time since the DZS began collecting data on retail spending that a growth was recorded 47 months in a row.

Retail spending in July increased by 0.1 percent for food, beverages and tobacco products, and 2.4 percent for non-food products.

“A two-digit growth rate in new car sales contributed to the growth in retail spending as well, with a strong growth of 39 percent compared to the same month last year,” the Raiffeisenbank Austria (RBA) analysts said, commenting on the report.

In the first seven months of 2018, retail spending went up by 3.6 percent compared to the same period last year.

RBA analysts expect positive trends to continue in retail spending in the following months as well, owing to positive indicators from the labour marked – employment rates growth and a drop in unemployment – as well as the growth of nominal and real wages.

“Personal spending will remain the main driver of growth in the following quarters as well. Another successful tourist season will contribute to the positive trends, along with the latest data which indicate that credit activity has mildly recovered,” RBA analysts said.

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