| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.2% | -0.2% | 0.9% |
| Year over Year | 1.2% | 2.0% |
Highlights
Retail sales in Australia fell 0.2 percent on the month in October after increasing 0.9 percent in September, with year-over-year growth slowing from 2.0 percent to 1.2 percent. Cost of living pressures continue to weigh on consumer spending, but officials also noted that sales in October were likely weaker because consumers are increasingly delaying purchases around this time of the year until Black Friday sales in late November.
Sales fell at a pace greater than the national average in the two most populous states, New South Wales and Victoria, but recorded solid increases in the next two most populous states, Queensland and Western Australia. Sales also were mixed across categories, with strong increases in food retailing and household goods retailing, offset by declines in sales for clothing retailers and department stores.
Sales fell at a pace greater than the national average in the two most populous states, New South Wales and Victoria, but recorded solid increases in the next two most populous states, Queensland and Western Australia. Sales also were mixed across categories, with strong increases in food retailing and household goods retailing, offset by declines in sales for clothing retailers and department stores.
Market Consensus Before Announcement
Retail sales in October are expected to increase 0.2 percent on the month after September's 0.9 percent stronger-than-expected rise that benefited from warm weather and release of a new iPhone.
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.
