| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Month over Month | 1.5% | 1.1% | -2.7% | -2.1% |
| Year over Year | 1.1% | 0.8% |
Highlights
Retail sales in Australia rose 1.1 percent on the month in January after falling 2.7 percent in December, with year-over-year growth picking up from 0.8 percent to 1.1 percent. Officials previously noted that sales in December were weaker because consumers are increasingly tending to concentrate their holiday spending during Black Friday sales in late November. Officials again noted that underlying retail spending has been subdued in recent months when month-to-month volatility is excluded.
Sales rose at a pace relatively close to the national average in most states and territories, with growth underperforming in the most populous state, New South Wales, but outperforming in the second most populous state, Victoria. Solid increases were recorded for nearly all major categories except for food retailing, which fell 0.1 percent on the month. Sales growth for clothing and household goods was well above the headline growth rate.
Sales rose at a pace relatively close to the national average in most states and territories, with growth underperforming in the most populous state, New South Wales, but outperforming in the second most populous state, Victoria. Solid increases were recorded for nearly all major categories except for food retailing, which fell 0.1 percent on the month. Sales growth for clothing and household goods was well above the headline growth rate.
Market Consensus Before Announcement
Retail sales in January are expected to increase 1.5 percent on the month to partially reverse December's sharper-than-expected 2.7 percent decline.
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.
