Retail sales decline indicates lower household consumption

Czech retail sales dropped by 0.5 percent year-on-year in June in real terms, while in May they increased by 3.2 per cent, the Czech Statistical Office reported. The June fall in retail sales was mainly due to a slowdown of household consumption which reflected the increasing unemployment, as well as a slower growth of wages in industry caused by the strong crown. Retail sales are expected to hit rock bottom in August because of the disastrous floods.