Distributive trade sales fell for the fourth straight month, but at a smaller contraction in June (-8.4%; May: -23.8%)
Attributable to the resumption of economic activities under the Recovery Movement Control Order (RMCO), which started on 10 June.
MoM: expanded sharply for the second successive month (21.8%; May: 26.3%), reflecting a continued domestic recovery.
2Q20: fell sharply (-22.6%; 1Q20: 1.6%) due to the impact of the Movement Control Order following the COVID-19 outbreak.
The improved performance was broad-based, steered mainly by the sales of motor vehicles, retail and wholesale trade
Retail trade: softer contraction (-9.2%; May: -16.1%) due to a smaller decline in sales of others in specialised store and household equipment as more businesses were allowed to resume operations.
Motor vehicles: dropped by less (-4.5%; May: -49.5%) as sales of vehicles, maintenance and repair, rebounded almost matching pre-pandemic level.
Wholesale trade: smaller drop (-8.7%; May: -23.6%) due to less decline in sales of other specialised and household goods.
Improved retail trade performance in the region
JP: fell for the fourth straight month (-1.3%; May: -12.4%) but at a smaller contraction amid persistence weakness in spending of general merchandise and big-ticket items.
SG: contraction eased (-27.8%; May: -52.0%) on the back of the gradual economic reopening, as Singapore entered phase one on 2 June and phase two on 19 June.
In spite of MoM double digit growth rebound in May and June, and supported by the larger economic stimulus package, the recovery pace is expected to be weighed by persisting COVID-19 rising infection fears.
Therefore, we maintain our private consumption forecast to moderate sharply to 1.5% in 2Q20 (1Q20: 6.7%), weighing overall 2Q20 GDP growth (-7.5%; 1Q20: 0.7%). Nevertheless, growth is expected to recover gradually, possibly registering a softer contraction in 3Q20 (-4.5%) on the impact of ongoing fiscal stimulus and monetary easing.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 5712 views | 5 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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