High Consumer Spending Despite Increase in Saving Rate

In the first half of 1989 consumer expenditures (adjusted for price increases) were 2.5 percent higher than in the first half of 1988, exceeding the level in the second half of 1988 by 2.3 percent (on a seasonally adjusted basis). This favourable development occurred despite a rise in the saving rate. As in the past, demand for durable consumer goods profited the most from the high income gains, raising the share of imported goods in total consumption. Retail trade was also boosted by purchases made by Hungarian shoppers.