• Distributive trade weakened to 5.3% yoy but decreased 4.0% mom in April

• Sales value remained above RM100.0bn in April

• Weaker monthly growth was underpinned by sales value for all sub-sectors recorded negative growth

• Global retail sales remained weak

• 2019 retail sales growth revised upwards to 4.9%

Growth in distributive trade eased slightly to 5.3% in April, lower than 5.5% registered in the preceding month. The monthly sales value amounted to RM105.1bn. Retail sales, which contributed 40.3% to total distributive trade, increased by 6.3% yoy in April to RM41.6bn, slowing from 6.9% rise in the prior month. The expansion was driven by retail sale of food, beverages & tobacco in specialised stores (Apr: 8.8%; Mar: 9.4%), retail sale via stalls & markets (Apr: 8.2%; Mar: 9.8%) and retail sale of cultural & recreation goods in specialised stores (Apr: 7.2%; Mar: 8.1%). Likewise, sales of motor vehicles also increased at a slower pace of 2.2% yoy. On the other hand, wholesale trade increased at a slightly faster pace of 5.3% yoy to reach RM51.2bn from 5.0% in the previous month.

On monthly basis, the distributive trade decreased 4.0% after registering an increase of 5.8% in March as sales value for all sub-sectors recorded negative growth. Sales of wholesale trade declined 3.8% mom (Mar: +6.1%; Feb: -5.1%; Jan: +0.2%). Monthly sales of retail trade contracted 4.7% (Mar: +2.6%; Feb: -3.0%; Jan: -1.8%) while sales value of motor vehicles declined 2.0% (Mar: +16.8%; Feb: -11.6%; Jan: +2.6%).

Source: BIMB Securities Research - 11 Jun 2019