| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.3% | 0.1% | -0.4% |
| Year over Year | 1.3% | 0.8% |
Highlights
Retail sales in Australia rose 0.1 percent on the month after falling 0.4 percent in March, with year-over-year growth picking up from 0.8 percent to 1.3 percent. Performance was mixed on a regional basis, with sales increasing in the most populous state, New South Wales, but falling in the two next most populous states, Victoria and Queensland. Sales were also mixed across major categories, with increases in sales of household goods and other retailing offset by declines in food and clothing sales.
Excluding the impact of a series of Taylor Swift concerts earlier in the year, retail sales in Australia have been very weak in recent months, highlighting the impact of restrictive policy settings and cost of living pressures. At their most recent meeting earlier this month, officials at the Reserve Bank of Australia noted that"households have been curbing discretionary spending" and warned that"there is a risk that household consumption picks up more slowly than expected".
Excluding the impact of a series of Taylor Swift concerts earlier in the year, retail sales in Australia have been very weak in recent months, highlighting the impact of restrictive policy settings and cost of living pressures. At their most recent meeting earlier this month, officials at the Reserve Bank of Australia noted that"households have been curbing discretionary spending" and warned that"there is a risk that household consumption picks up more slowly than expected".
Market Consensus Before Announcement
Retail sales in April are expected to increase 0.3 percent on the month after March's 0.4 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.
