INSTANT VIEW 2-Czech Dec retail sales slow more than expected

    Growth of Czech retail sales 
slowed slightly more than expected at 4.4 percent year-on-year 
in December, but quickened to a record 6.4 percent for the whole 
of 2006, confirming a rebound in household spending. 
 
KEY POINTS: 
(change in percent)      Dec         Nov         Nov forecast 
RETAIL SALES (y/y)       4.4         6.5 (6.4)      5.0 
 
(Click on [ID:nPRA001156] for full table of December retail 
sales) 
 
- The headline, seasonally-unadjusted figure includes car sales 
and repairs, fuel sales and spending on a variety of consumer 
goods, including foodstuffs. 
- Seasonally-adjusted sales including the auto segment rise by a 
real 0.5 percent month-on-month in December and are also up 0.5 
percent excluding the auto segment. 
- In seasonally-unadjusted terms, retail sales net of cars and 
fuel grow 4.7 percent year-on-year, after a revised 5.9 percent 
rise a month earlier. 
- Foodstuffs sales growth picks up to 5.1 percent from the 
previous month's 4.7 percent. 
- In the auto segment, sales up 3.6 percent year-on-year thanks 
to a 3.8 percent gain in fuel sales and a 3.6 percent rise in 
cars sales and repairs. 
 
COMMENTARY: 
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "Growth in December alone was not staggering, as expected, 
because last year saw a big pre-Christmas spending binge and 
numbers were compared to a higher base. 
    "As consumer demand gains steam and a mortgage and credit 
tightening does not seem to be on the agenda, 2007 will be 
another record year for vendors." 
 
MARKET REACTION: 
- Crown steady at 28.245 per euro . 
 
BACKGROUND: 
- Jan consumer inflation                         [ID:nL14403418] 
- Dec industrial output figures                  [ID:nL14213337] 
- Report on last Czech c.bank rate decision      [ID:nPRA001122] 
                                 [ID:nL25513531] [ID:nL02157584] 
 
LINKS: 
- For further details on December 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                       
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH ECONOMY/RETAIL  
    

[PRAGUE/Reuters/Finance.cz]