Analysts ascribed this slump, higher than expected, to a rise in unemployment in the country, with all of this evidencing the growing consumer pessimism.

October was the 13th consecutive month with a decrease in the retail trade turnover.

In September, this year-on-year fall was 12.8 percent.

Results from October show the accelerating decline in consumption.

Analysts interviewed by Hina on this topic projected the consumption contraction ranging between 10 and 13 in October, but this fall was sharper.

"A surprisingly strong decline shows that consumer pessimism is growing, as a result of unfavourable trends on the labour market. The structure of consumption shows that the population quickly adjusts to recession conditions, and people buy only the necessities," a Raiffeisen Consulting director, Zrinka Zivković-Matijevic, told Hina.

A steady downturn in consumption shows that the national economy's growth can no longer be based on either personal or state consumption.

"Sustainable recovery of the economy requires structural reforms in both the real and public sector as well as the improvement of competitiveness, as the growth can no longer be based on the spending," she said.

Spending is under pressure due to the imposing of the so-called crisis tax on salaries and incomes this summer and a one-percent rise of the Value Added Tax to 23-percent rate as well as to a decline in the placements of household loans.

For instance, the spending on victuals increased while the sales of cars, clothes and furniture plummeted, said Zdeslav Santic, the Splitska Banka chief analyst, warning that the economy could not be salvaged as long as personal consumption was not stabilised.