Czech consumers are showing remarkable spending power as retail sales surged by 5.8% year-over-year in April, up from March’s 3.9% growth. The spending spree spans across all major retail categories, with fuel, online shopping, and food leading the charge.
E-commerce and mail-order businesses have emerged as particular winners, posting an impressive 11% growth. Beauty products are keeping pace with similar growth figures, while discretionary spending on culture, sports, and recreation has increased by nearly 7%.
The automotive sector is also showing healthy signs, with sales and repairs recording a 4.8% year-over-year increase. These figures have exceeded economists’ expectations, who had predicted growth of just over 3%.
According to Raiffeisenbank analyst Martin Kron, this robust consumer activity is driven by falling inflation rates, steady wage growth, and pent-up consumer demand. Despite a slight uptick in unemployment, it remains below natural levels, enabling consumers to maintain their spending habits.
Notably, these figures represent real growth in retail sales at constant prices, excluding inflation effects.