INSTANT VIEW 4-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: 
    VOJTECH BENDA, SENIOR ECONOMIST, ING WHOLESALE BANKING, 
PRAGUE 
    "The slowdown in retail sales dynamics can be ascribed 
chiefly to a lower number of working days over a year ago. 
However, another important factor was a front-loading of 
pre-Christmas shopping into the two preceeding months." 
     
    JAN VEJMELEK, HEAD OF ECONOMICS AND STRATEGY RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "Strong consumption growth seems to be currently the only 
significant pro-inflationary factor, which may sooner or later 
prompt the central bank to take it into account when setting 
interest rates." 
     
    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 28.235 per euro  at 0820 GMT. 
 
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]