| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | -0.1% | -3.9% | 1.4% |
| Year over Year | 7.5% | 7.7% |
Highlights
Retail sales in Australia fell 3.9 percent on the month in December after advancing 1.4 percent in November, while year-over-year growth moderated slightly from 7.7 percent to 7.5 percent. This was the first month-over-month fall in sales since a similarly sharp decline in December 2021, with officials advising that the fall partly reflects stronger spending in November by consumers in response to heavy discounting by retailers late in that month. Seasonal patterns in Australian retail patterns have been impacted by several factors in recent years and this may partly account for the magnitude of the reported decline in sales in December.
Sales fell on the month for all of Australia's states and territories, with the declines close to the national average for most of them. Sales fell particularly sharply for department stores and for clothing and household goods but were close to flat for food retailing and cafes and restaurants.
Sales fell on the month for all of Australia's states and territories, with the declines close to the national average for most of them. Sales fell particularly sharply for department stores and for clothing and household goods but were close to flat for food retailing and cafes and restaurants.
Market Consensus Before Announcement
Retail sales are expected to edge 0.1 percent lower in December after rebounding 1.4 percent in November.
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.
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.
