INSTANT VIEW 3-Czech retail sales growth lags market forecast

...rise, data showed on Thursday. 
    Analysts said the data point to ongoing robust household 
spending growth, which is expected to propel the economy to 
about 6 percent growth for the third consecutive year and keep 
the central bank watchful against a rise in price pressures. 
**************************************************************** 
KEY POINTS: 
(change in percent)       Aug       July         Aug forecast 
RETAIL SALES (y/y)        7.3        8.9         8.0 
 
(Click on [ID:nPRA001560] for full table of August retail sales) 
 
- The headline, unadjusted figure includes car sales and 
repairs, fuel sales and spending on a variety of consumer goods, 
including foodstuffs. 
 
BACKGROUND: 
- Sept consumer inflation                        [ID:nL08333224] 
                                 [ID:nL08166283] [ID:nL08396691] 
- Aug industrial output figures                  [ID:nL12144400] 
- Report on last Czech c.bank rate decision      [ID:nL27772602] 
  [ID:nPRA001517] [ID:nPRA001518] [ID:nPRA001533] [ID:n05533999] 
 
COMMENTARY: 
    HELENA HORSKA, ECONOMIST, RAIFFEISENBANK, PRAGUE 
    "Despite a mild slowdown in sales growth below 8 percent in 
August, household consumption keeps growing at a fast pace. 
    "Household consumption remains the main driver of Czech 
economic growth. Monetary policy needs to stay on alert given 
rising consumption and a tightening labour market." 
     
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "This is bang in line with expectations, no surprise. On one 
hand, (the figure) may raise concerns about future demand-pull 
inflation, on the other hand, consumption growth is set to 
decelerate sharply from the beginning of next year. The final 
argument is that because of the high degree of openess in the 
economy, higher demand will get reflected in the trade balance 
rather than in prices. This data brings no news for the crown." 
 
MARKET REACTION: 
- Crown flat on the day at 27.475 per euro  by 0711 
GMT. Debt yields   and money market rates 
  also steady. 
 
LINKS: 
- For further details on August retail sales and past data, 
Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-slu 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
  
  Keywords: CZECH RETAIL/  
    

[PRAGUE/Reuters/Finance.cz]