| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.3% | 0.9% | 0.2% |
| Year over Year | 2.0% | 1.5% |
Highlights
Retail sales in Australia rose 0.9 percent on the month in September after increasing 0.2 percent in August, with year-over-year growth picking up from 1.5 percent to 2.0 percent. Officials noted that sales received support from warmer-than-usual weather, the release of a new iPhone model, and the introduction of an energy rebate. Consumer sentiment may also have been supported by the recent pause in policy tightening by the Reserve Bank of Australia, which has now extended for four months.
Sales rose on the month across all states and territories, outperforming the national average in the two most populous states, New South Wales and Victoria, but underperforming in the next two most populous states, Queensland and Western Australia. Sales also rose in most categories, with strong increases in department stores and household goods retailing, offset by weak growth in clothing sales and flat sales for cafes, restaurants, and takeaway food services.
Sales rose on the month across all states and territories, outperforming the national average in the two most populous states, New South Wales and Victoria, but underperforming in the next two most populous states, Queensland and Western Australia. Sales also rose in most categories, with strong increases in department stores and household goods retailing, offset by weak growth in clothing sales and flat sales for cafes, restaurants, and takeaway food services.
Market Consensus Before Announcement
Retail sales in September are expected to increase 0.3 percent on the month after August's 0.2 percent gain.
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.
