Retail sales fell sharply in December (-19.2% YoY; Nov: -16.3%), a seven-month low
A broad-based slowdown led by apparel (-59.7%; Nov: -56.6%), followed by other goods (-55.0%; Nov: -51.3%) and cultural & recreation (-40.0%; Nov: -40.3%) as well as due to a high base effect a year ago.
MoM: rebounded sharply (4.8%; Nov: -1.2%) attributable to a MoM growth rebound in household appliances (7.0%; Nov: - 3.8%) and stationery & communication (3.3%; Nov: -6.2%).
Growth contraction is expected to ease in January
Real Sales Index (RSI) is expected to fall by 14.2% YoY in January, due to a broad-based slowdown across all commodity groups and a base effect. Similarly, growth is likely to fall on MoM (-1.8%; Dec: 4.8%) in line with the weak consumer confidence index which dropped to a two-month low (84.9; Dec: 96.5).
Further improvement expected on YoY sales growth for the next three to six months
3-month Sales Expectation Index (SEI): to expand sharply by 15.9% in March (expected Feb: 8.9%).
6-month SEI: steep expansion expected in June (18.0%; expected May: 5.7%).
Inflationary pressure is expected to remain weak for the next three months
3-month Price Expectations Index (PEI): to fall sharply in March (-6.5% YoY; expected Feb: -2.7%).
6-month PEI: marginal growth contraction expected in June (-0.7% YoY; expected May: -9.1%).
Domestic COVID-19 situation to weigh on growth recovery
The retail sales are expected to remain under pressure in the near term given the continued increase of COVID-19 cases, forcing the government to extend the public activity restrictions until 22 February.
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 5203 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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