|Month over Month||0.3%||0.2%||0.2%|
|Year over Year||3.4%|
May retail sales were up a less than expected 0.2 percent after inching up 0.1 percent in April. Expectations were for a 3 percent increase. On the year, sales were up 3.4 percent.
Food retailing was up 0.7 percent, other retailing gained 1.4 percent and cafes, restaurants & takeaway food services added 0.3 percent. Department stores were virtually unchanged. However, household goods retailing declined 1.1 percent while clothing, footwear & personal accessory retailing was 1.2 percent) lower.
Sales in New South Wales, Victoria and South Australia increased. In Tasmania sales were relatively unchanged. Retail sales were down in Western Australia, Queensland, the Northern Territory and the Australian Capital Territory.
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.