Hungarian retail sales growth disappointed policymakers as May figures showed weaker-than-expected performance following Easter-related increases. Official statistics from Budapest revealed annual workday-adjusted growth of 2.1%, falling short of Bloomberg economists’ median forecast of 3.7%. This marked a significant decline from April’s figures, where sales decreased by 1.3% month-on-month.

The data presents challenges for Prime Minister Viktor Orban’s economic recovery strategy ahead of upcoming elections, highlighting the fragile state of consumer spending in Hungary.

— News Original —
Hungarian retail sales slowed more than expected after an Easter bump, underscoring the fragility of Prime Minister Viktor Orban ’s efforts to avoid a recession before elections.

Store receipts rose an annual workday-adjusted 2.1% in May, the Budapest-based statistics office reported on Monday. The median estimate of economists in a Bloomberg survey was 3.7%, with all forecasts exceeding 3%. Sales fell 1.3% from April.