AU: Retail Sales


Thu Aug 03 20:30:00 CDT 2017

Consensus Actual Previous
Month over Month 0.1% 0.3% 0.6%
Year over Year 3.8% 3.8%

Highlights
Retail sales in Australia advanced 0.3 percent (seasonally adjusted) in June after an increase of 0.6 percent in May, above the consensus forecast of 0.1 percent. Seasonally adjusted retail sales rose 3.8 percent in year-on-year terms in June, unchanged from the growth recorded in May.

Seasonally adjusted sales rose on the month in most Australian states and territories, with the most populous state, New South Wales, recording growth of 0.5 percent. Sales, however, dropped by 0.3 percent in Victoria, the second most populous state.

Today's data suggest that household consumption should make a solid contribution to quarterly economic growth in the three months to June. In seasonally adjusted volume terms, retail sales rose by 1.5 percent in the three months to June, well up from 0.2 percent in the three months to March. This headline growth reflects solid increases in all categories of retail sales.

Definition
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.

Description
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.