Retail spending in October 2020 dropped by 2.5% compared to October 2019, and October this year was the eighth consecutive month to see retail spending go down albeit at a slower pace than the month before.

The national statistical office (DZS) on Monday released a report on retail sales, and according to working-day adjusted data, spending in October was up 5.4% from the previous month while compared to October 2019, it was 2.5% down.

The 2.5% drop in spending was lower than in September, when spending went down by 7.3%, and it was also the smallest drop since March.

The turnover from retail trade in non-food products, not including motor oils and lubricants, grew by 2.2% on the year, while the turnover from retail trade in food, drinks and tobacco sales dropped 0.2%.

In the first ten months of this year retail turnover declined by 6.5% in real terms from the same period of 2019.

Economy contracts

The continued contraction in retail turnover in October is due to weak personal consumption in the current coronavirus pandemic.

A drop in consumption is one of the main causes of recession since household consumption accounts for the largest share of GDP.