| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.4% | 0.2% | 0.5% |
| Year over Year | 1.5% | 2.1% |
Highlights
Retail sales in Australia rose 0.2 percent on the month in August after increasing 0.5 percent in July, with year-over-year growth slowing from 2.1 percent to 1.5 percent. Officials noted that cost-of-living pressures have continued to weigh on spending, despite sales receiving some support over the month from warmer-than-usual weather and the women's world cup football tournament.
Performance was mixed on a regional basis, with sales flat in the most populous state, New South Wales, and growing close to the national average in the next two most populous states, Victoria and Queensland, but falling in other parts of the country. Performance was also mixed across categories, with strong increases in clothing stores and cafes and restaurants offset by weakness in food and household goods retailing.
Performance was mixed on a regional basis, with sales flat in the most populous state, New South Wales, and growing close to the national average in the next two most populous states, Victoria and Queensland, but falling in other parts of the country. Performance was also mixed across categories, with strong increases in clothing stores and cafes and restaurants offset by weakness in food and household goods retailing.
Market Consensus Before Announcement
Supported by school holidays and the beginning of the women's world cup, retail sales in July rebounded by a firmer-than-expected 0.5 percent. Forecasters see sales, supported further by the world cup, rising 0.4 percent in August.
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.
