• Distributive trade strengthened to 6.0% yoy in December

• Consumer spending remains soft despite better retail sales numbers

• Growth in distributive trade eases in 4Q19, weakened in 2019 versus the previous year

• Services sector registered higher revenue in 2019

• Construction sector recovered in 4Q19

• Growth to drift lower in 4Q19 GDP

Distributive trade growth edged up 6.0% yoy to RM115.9bn in December backed by better gain in all three sub-sectors. Retail trade increased RM3.1bn (7.0% yoy). Similarly, wholesale trade and motor vehicles rose RM2.9bn (5.5% yoy) and RM0.5bn (4.5% yoy) respectively.

Retail sales increased by 7.0% yoy to RM47.8bn. The expansion was fuelled by retail trade not in stores, stalls or markets (Dec: 9.2%; Nov: 8.2%), retail sale via stalls & markets (Dec: 8.9%; Nov: 8.6%), retail sale of other goods in specialised stores (Dec: 8.8%; Nov: 8.6%), retail sale of food, beverages & tobacco in specialised stores (8.6%), retail sale in non-specialised stores (Dec: 8.5%; Nov: 8.3%) and retail sale of cultural & recreation goods in specialised stores (7.0%).

On monthly basis, sales value of wholesale & retail trade increased RM4.1bn or 3.7%, a huge jumped when compared to 0.4% growth in November. Monthly sales of retail trade and wholesale trade jumped 4.2% and 4.5% respectively but sales value of motor vehicles decreased 1.7% mom.

Meanwhile, volume index of wholesale & retail trade posted a growth of 6.0% yoy to reach 134.7 points. The key contributor for this growth was retail trade with 7.0%. This was followed by wholesale trade (5.4%) and motor vehicles (4.4%). As for seasonally adjusted volume index, it increased 0.02 per cent as against a month ago.

Source: BIMB Securities Research - 11 Feb 2020