| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | -0.6% | -2.7% | 2.0% |
| Year over Year | 0.8% | 2.2% |
Highlights
Retail sales in Australia fell 2.7 percent on the month in December after advancing 2.0 percent in November, with year-over-year growth slowing from 2.2 percent to 0.8 percent. Officials previously noted that sales in November strengthened sharply because consumers are increasingly tending to concentrate their holiday spending during Black Friday sales in late November. Officials anticipated that growth would weaken in December further noting that even when excluding month-to-month volatility, underlying retail spending has been subdued in recent months.
Sales fell at a pace relatively close to the national average in nearly all states and territories. Sales were also flat or lower across all major categories, but the strongest declines were recorded by household goods retailing, clothing retailers, and department stores. These categories all recorded above-average growth in November.
Sales fell at a pace relatively close to the national average in nearly all states and territories. Sales were also flat or lower across all major categories, but the strongest declines were recorded by household goods retailing, clothing retailers, and department stores. These categories all recorded above-average growth in November.
Market Consensus Before Announcement
Retail sales in December are expected to decrease 0.6 percent on the month after November's stronger-than-expected 2.0 percent jump that benefited from strong Black Friday sales.
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.
