|Month over Month||0.3%||0.4%||0.0%|
|Year over Year||2.8%||2.7%|
Retail sales in Australia rose 0.4 percent in August after a flat July, slightly better than the consensus forecast for growth of 0.3 percent. Sales rose 2.8 percent in year-on-year terms in August, up from 2.7 percent in each of the two previous months.
The increase in the headline number reflects a strong increase in department stores (plus 3.5 percent), with gains also recorded in sales for cafes, restaurants & takeaway food services (plus 1.2 percent), food retailing (plus 0.3 percent) and household goods retailing (plus 0.2 percent). Falls were recorded in other retailing (minus 0.6 percent) and clothing, footwear & personal accessory retailing (minus 0.4 percent).
Turnover rose in Victoria, New South Wales, Queensland, South Australia and the Australian Capital Territory, but fell in Western Australia, Northern Territory and Tasmania.
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.