AU: Retail Sales

Thu Jan 08 18:30:00 CST 2015

Consensus Actual Previous
Month over Month 0.3% 0.1% 0.4%
Year over Year 5.0% 5.7%

November retail sales inched up a less than expected 0.1 percent and were up 5.0 percent from a year ago. The monthly increase was the weakest since August. Sales were up 0.4 percent in October 2014 and 1.3 percent in September.

Food sales were up 0.6 percent with supermarkets & grocery stores (0.7 percent) and other specialized food retailing (2.8 percent) but liquor retailing was down 2.3 percent. Household goods also were up 0.6 percent. Furniture, floor coverings, housewares & textile goods retailing and hardware, building & garden supplies were up but electrical & electronic goods retreated.

Clothing, footwear & personal accessories were down 0.7 percent. Clothing retailing & footwear and other personal accessory retailing both were down. Cafes, restaurants & takeaway food services were up 0.8 percent.

Retail sales measure the total receipts at stores that sell durable and nondurable goods. The Retail Business Survey covers all employing retail trade businesses who predominantly sell to households.

With consumer spending a large part of the economy, market players continually monitor spending patterns. The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.

Retail sales not only give you a sense of the overall picture, but also the trends among different types of retailers. Especially strong apparel or electronics sales can indicate strength in those industries, for example. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.