In 2023, trade sales grew anemic, at no more than 2%, according to a report published on Tuesday by Statistics. Retail sales are an important economic indicator that shows how the economy is doing. This approximates private consumption, the main engine of the economy, quite well. Think of all the people and companies involved in the production, distribution, and sale of the goods you use every day: food, clothing, fuel, and more.
When consumers open their pockets, the economy does well. Store shelves begin to empty and new orders are placed to restock replacement items. Factories, in turn, also order more raw materials for production
When consumers feel uncertain about the future and decide to put off buying a new refrigerator or replacing furniture, the economy slows down. It happened last year. At such times, governments resort to tax cuts to boost the economy. Leaving more money in the hands of consumers, they begin to consume again, and the economy begins to grow again.
The retail sector includes many products, including clothing, electronics, home furnishings and food. The statistics measure these sales both online and in brick-and-mortar stores.
Trade sales are also subject to seasonal trends, usually caused by changes in consumer demand due to external factors such as weather or holidays. For example, during the winter people are less likely to leave the house or shop online, but at Christmas they explode. In addition, during the holiday months, sales slow down as people sunbathe on the beaches of Greece, Bulgaria or other countries.
Economic cycles also play a crucial role in the evolution of trade sales. These cycles are periods when the economy is either in an expansion phase or in a recession phase. These fluctuations directly affect consumer confidence, influencing their willingness to buy products
December 2023 compared to November 2023
The volume of retail turnover in December 2023 compared to the previous month increased by a total of 3.9%, due to an increase in sales of food products, beverages and tobacco products by 18.6%. A decrease was recorded in the retail trade of motor fuel in specialized stores (-3.7%) and the sale of non-food products (-3.2%).
2023 compared to 2022
The volume of retail trade turnover in 2023 compared to 2022 increased by a total of 1.9%, due to growth in sales of non-food products (+3.8%) and sales of food products, beverages and tobacco (+3.6%). Retail trade of motor fuel in specialized stores decreased by 4.4%.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.