| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.4% | 0.0% | 0.4% |
| Year over Year | 4.2% | 5.4% |
Highlights
Retail sales in Australia were flat on the month in April, weakening from an increase of 0.4 percent in March and falling short of the consensus forecast of 0.4 percent. In year-over-year terms, growth slowed from 5.4 percent to 4.2 percent.
This weakness in sales suggests that cost of living pressures and policy tightening by the Reserve Bank of Australia are continuing to weigh on consumers' discretionary purchases. RBA officials highlighted uncertainties related to the outlook for household spending after they increased policy rates again at their meeting earlier in the month.
Sales fell on the month in Australia's two most populous states, New South Wales and Victoria, and rose only marginally in the third most populous, Queensland. Most categories also recorded flat or lower sales in April, with the exception of clothing and department sales. Officials attributed their higher sales to weather conditions being cooler and wetter than average.
This weakness in sales suggests that cost of living pressures and policy tightening by the Reserve Bank of Australia are continuing to weigh on consumers' discretionary purchases. RBA officials highlighted uncertainties related to the outlook for household spending after they increased policy rates again at their meeting earlier in the month.
Sales fell on the month in Australia's two most populous states, New South Wales and Victoria, and rose only marginally in the third most populous, Queensland. Most categories also recorded flat or lower sales in April, with the exception of clothing and department sales. Officials attributed their higher sales to weather conditions being cooler and wetter than average.
Market Consensus Before Announcement
Retail sales are expected to rise 0.4 percent in April matching March's 0.4 percent rise.
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.
