Russia Retail Sales Surprise Upside Despite Growth Slowdown

Russia’s retail sales growth slowed to 3.3% year-on-year from a previously stronger 4.8%, a deceleration of 1.5 percentage points. Despite remaining in positive territory, the pace of expansion is now roughly one-third lower than the prior reading, signaling softer consumer momentum.

However, the 3.3% outcome surpassed analysts’ 1.8% estimate by a wide margin, suggesting domestic demand is more resilient than expected. This upside surprise supports a firmer outlook for consumer-facing sectors such as retailers and discretionary goods producers, while also underpinning sentiment in banks exposed to household lending. The positive deviation from forecasts leans toward a supportive, near-term impact on Russian equities, even as the slower trend keeps longer-term growth expectations more measured.