Cyprus shows first sign of consumer slowdown

Retail trade growth slowed in August, with the biggest impact coming from the household sector, in the first signs of a slowdown in consumer spending.
According to provisional figures for August from the Statistical Service, retail trade volumes rose by 3.9% compared with the same month of 2007, having risen by 10.4% in July.
However, there was a very sharp fall of 9.9% in sales of household goods, which include furniture and electrical goods.
These have been rising at very strong rates for around four years and a decline of this magnitude is unprecedented in recent history, according to our records.
There was also a small decline in sales of textiles, clothing, footwear and leather goods.
For the period January-July 2008 retail trade volume rose by 10.6% compared to the corresponding period of 2007 and by a provisional 9.7% in January-August.
Meanwhile the value of retail sales rose by a provisional 9.5% in August compared with 16.3% in July.

Fiona Mullen
www.sapientaeconomics.com