TAIPEI (Taiwan News) — The Ministry of Economic Affairs announced on Wednesday that retail sales for August reached NT$391.5 billion (US$12.85 billion), a 0.4% year-on-year increase.

This ended four consecutive months of year-on-year declines. However, it was not enough to overcome the downturn earlier in the year as retail sales data from January to August totaled NT$3.1454 trillion, a 0.7% year-on-year decrease, per UDN.

Chen Yu-fang (陳玉芳), deputy director of the MOEA Statistics Department, said the August turnaround was due to businesses seizing retail opportunities associated with holidays and festivals such as Father's Day and the Ghost Festival, as well as summer travel. Department store sales saw a 4.5% year-on-year increase, while convenience stores saw a 4% year-over-year increase.

Meanwhile, economic uncertainty has slowed durable goods consumption, like automobiles and luxury goods. The auto and two-wheeler industry continues to experience declines, with a 4.5% year-on-year decrease in August.

Chen said that excluding vehicles, retail sales in the first eight months of this year increased 1.3% year-on-year, indicating domestic consumption momentum remains.

For the catering industry, August sales reached NT$93.3 billion, a 4.8% year-on-year increase, while sales for the first eight months hit NT$711.2 billion, a 3.1% year-on-year increase.

As for September's forecasted retail sales, a decline of between 2% to 5% year-on-year is expected due to weak vehicle sales. New vehicle launches and manufacturer promotions may lift sales, and upcoming national holidays and department store anniversary sales will help boost retail.

Looking forward, Chen said higher electricity prices in October could spark inflation concerns. She said small businesses may pass on the cost to consumers; otherwise, prices will be stable.