| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.3% | 0.5% | -0.8% |
| Year over Year | 2.1% | 2.3% |
Highlights
Retail sales in Australia rebounded in July, increasing 0.5 percent on the month after falling 0.8 percent in June, with year-over-year growth easing from 2.3 percent to 2.1 percent. Officials noted that school holidays and the women's World Cup football tournament supported spending in July, but the moderation in year-over-year growth suggests that higher interest rates and cost of living pressures are continuing to impact consumer behaviour.
Performance was mixed on a regional basis, with sales growing on the month at a rate above the national average in the three most populous states, New South Wales, Victoria, and Queensland, but falling in other parts of the country. Performance was also mixed across categories, with strong increases in clothing and department store sales offset by weakness in food and household goods retailing.
Performance was mixed on a regional basis, with sales growing on the month at a rate above the national average in the three most populous states, New South Wales, Victoria, and Queensland, but falling in other parts of the country. Performance was also mixed across categories, with strong increases in clothing and department store sales offset by weakness in food and household goods retailing.
Market Consensus Before Announcement
Retail sales fell an unexpected 0.8 percent in June for the year's only declne. Forecasters see sales rebounding 0.3 percent in July.
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.
