TALLINN — Although Latvia’s retail figures are looking better, sales are still down in Estonia and Lithuania with Estonian car sales hitting a 10-year low.

The number of cars sold in February 2010 is down by 47.7 percent compared to the same period last year when 794 cars were sold, according to the Estonian Union of Car Sales and Services. Only 415 cars were sold in February, which is even lower than [private_supervisor]January’s sales, when 529 cars were sold.

Last month’s sales results are the worst in the decade dropping by 87 percent since May 2007, which was the best ever in car sales with 3,192 cars sold.

Jaak Uudla, chairman of the board in  the Estonian Union of Car Sales and Services blamed the financial crisis for the bad sales results, but said that better times are ahead.

“People consider more before buying a new car,” Uudla told Baltic Reports, “On the other hand, the sales of used cars is better.”

Uudla said that according to all logical rules the situation should have been bottomed out already, so maybe some improvement can be expected in the summer or fall. However Uudla expects total sales to stay under 10,000 this year.

Retail woes

Estonian retail sales in general decreased by 10 percent in January, compared to the same period last year according to the Estonian Statistics Department.

According to Maris Lauri, economist of Swedbank, retail sales is largely reflecting the consumption of households — when grocery products are necessary, then other consumer goods can be considered as not so important buy.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the numbers will get better in upcoming months.

“As the faster fall in retail sales got its start in the beginning of 2009, then now people have adjusted to the current economic situation, and the reference base is low as well, therefore within the next months the retail sales numbers will rather increase,” Lember told Baltic Reports.

Meanwhile Lithuania now has the worst retail figures in the Baltics, with January showing a 21 percent decline from December and a 31 percent decline year-on-year. The lack of sales is being reflected in deflation — non-foods prices showed the strongest slowdown while clothing and footwear prices eased by 2.3 percent year-on-year and become the key driver of disinflation. [/private_supervisor] [private_subscription 1 month]January’s sales, when 529 cars were sold.

Last month’s sales results are the worst in the decade dropping by 87 percent since May 2007, which was the best ever in car sales with 3,192 cars sold.

Jaak Uudla, chairman of the board in the Estonian Union of Car Sales and Services blamed the financial crisis for the bad sales results, but said that better times are ahead.

“People consider more before buying a new car,” Uudla told Baltic Reports, “On the other hand, the sales of used cars is better.”

Uudla said that according to all logical rules the situation should have been bottomed out already, so maybe some improvement can be expected in the summer or fall. However Uudla expects total sales to stay under 10,000 this year.

Retail woes

Estonian retail sales in general decreased by 10 percent in January, compared to the same period last year according to the Estonian Statistics Department.

According to Maris Lauri, economist of Swedbank, retail sales is largely reflecting the consumption of households — when grocery products are necessary, then other consumer goods can be considered as not so important buy.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the numbers will get better in upcoming months.

“As the faster fall in retail sales got its start in the beginning of 2009, then now people have adjusted to the current economic situation, and the reference base is low as well, therefore within the next months the retail sales numbers will rather increase,” Lember told Baltic Reports.

Meanwhile Lithuania now has the worst retail figures in the Baltics, with January showing a 21 percent decline from December and a 31 percent decline year-on-year. The lack of sales is being reflected in deflation — non-foods prices showed the strongest slowdown while clothing and footwear prices eased by 2.3 percent year-on-year and become the key driver of disinflation. [/private_subscription 1 month] [private_subscription 4 months]January’s sales, when 529 cars were sold.

Last month’s sales results are the worst in the decade dropping by 87 percent since May 2007, which was the best ever in car sales with 3,192 cars sold.

Jaak Uudla, chairman of the board in the Estonian Union of Car Sales and Services blamed the financial crisis for the bad sales results, but said that better times are ahead.

“People consider more before buying a new car,” Uudla told Baltic Reports, “On the other hand, the sales of used cars is better.”

Uudla said that according to all logical rules the situation should have been bottomed out already, so maybe some improvement can be expected in the summer or fall. However Uudla expects total sales to stay under 10,000 this year.

Retail woes

Estonian retail sales in general decreased by 10 percent in January, compared to the same period last year according to the Estonian Statistics Department.

According to Maris Lauri, economist of Swedbank, retail sales is largely reflecting the consumption of households — when grocery products are necessary, then other consumer goods can be considered as not so important buy.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the numbers will get better in upcoming months.

“As the faster fall in retail sales got its start in the beginning of 2009, then now people have adjusted to the current economic situation, and the reference base is low as well, therefore within the next months the retail sales numbers will rather increase,” Lember told Baltic Reports.

Meanwhile Lithuania now has the worst retail figures in the Baltics, with January showing a 21 percent decline from December and a 31 percent decline year-on-year. The lack of sales is being reflected in deflation — non-foods prices showed the strongest slowdown while clothing and footwear prices eased by 2.3 percent year-on-year and become the key driver of disinflation. [/private_subscription 4 months] [private_subscription 1 year]January’s sales, when 529 cars were sold.

Last month’s sales results are the worst in the decade dropping by 87 percent since May 2007, which was the best ever in car sales with 3,192 cars sold.

Jaak Uudla, chairman of the board in the Estonian Union of Car Sales and Services blamed the financial crisis for the bad sales results, but said that better times are ahead.

“People consider more before buying a new car,” Uudla told Baltic Reports, “On the other hand, the sales of used cars is better.”

Uudla said that according to all logical rules the situation should have been bottomed out already, so maybe some improvement can be expected in the summer or fall. However Uudla expects total sales to stay under 10,000 this year.

Retail woes

Estonian retail sales in general decreased by 10 percent in January, compared to the same period last year according to the Estonian Statistics Department.

According to Maris Lauri, economist of Swedbank, retail sales is largely reflecting the consumption of households — when grocery products are necessary, then other consumer goods can be considered as not so important buy.

Karel Lember, an economic analyst in the Ministry of Economic Affairs and Communications said that the numbers will get better in upcoming months.

“As the faster fall in retail sales got its start in the beginning of 2009, then now people have adjusted to the current economic situation, and the reference base is low as well, therefore within the next months the retail sales numbers will rather increase,” Lember told Baltic Reports.

Meanwhile Lithuania now has the worst retail figures in the Baltics, with January showing a 21 percent decline from December and a 31 percent decline year-on-year. The lack of sales is being reflected in deflation — non-foods prices showed the strongest slowdown while clothing and footwear prices eased by 2.3 percent year-on-year and become the key driver of disinflation.[/private_subscription 1 year]

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