• Distributive trade grew by 8.6% yoy in November
• Sales value surpassed RM100bn for seventh consecutive month
• Wholesale trade, retail trade and motor vehicle increased by 6.9% yoy, 12.6% and 2.1% yoy respectively
• Expect growth in retail sales to improve marginally in 2019

Distributive trade grew by 8.6% yoy to RM106.2bn in November following an 8.2% increase in the preceding month. The monthly sales value in November was marginally higher than October’s figure and continued to surpass RM100.0bn for the seventh consecutive month. Wholesale trade attributed 48.1% to total distributive trade, valued at RM51.0bn followed by retail trade (40.4%) and motor vehicles (11.6%) sales which stood at RM42.9bn and RM12.3bn respectively.

The increase in November was supported by all sectors. Retail trade continued to grow steadily in November, rising by 12.6% yoy from 11.2% yoy in the previous month, and hence sustaining its double digit growth for the sixth consecutive months. Nevertheless, wholesale trade as well as motor vehicles sales moderated in November. Wholesale trade eased to 6.9% yoy (Oct: 7.2%) whilst motor vehicles sales softened to 2.1% yoy (Oct: 2.9%) in November. The sales of motor vehicles in November was the lowest gain since October 2017 which rose by 1.4% yoy.

On monthly basis, the distributive trade moderated to 0.2% in November after a 1.2% increase in October. The slower pace of growth in November was mainly due to the contraction of wholesale trade (Nov: -1.6%; Oct: -0.9%) coupled with subdued motor vehicles sales.

Source: BIMB Securities Research - 14 Jan 2019