AU: Retail Sales

Wed Jun 03 20:30:00 CDT 2015

Consensus Actual Previous
Month over Month 0.3% 0.0% 0.3%
Year over Year 4.1% 4.5%

April retail sales disappointed, registering no changed on the month after increasing 0.2 percent in March. Expectations were for an increase of 0.3 percent. On the year, sales were up 4.1 percent. The April reading was the weakest since May 2014.

Sales advanced in cafes, restaurants & takeaway food services (0.8 percent) and clothing, footwear & personal accessory retailing (1.3 per cent). Household goods retailing was relatively unchanged. There were declines in other retailing and food retailing (both down 1.0 percent), food and department stores (down 0.7 per cent).

Sales were up regionally in Victoria, the Australian Capital Territory, South Australia and the Northern Territory. New South Wales was relatively unchanged. Sales were down in Queensland, Tasmania and Western Australia.

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.