Australia: Retail sales gains traction in November
Latest reading: Retail sales increased 0.8% month on month in seasonally adjusted terms in November (October: +0.5% mom s.a.) but fell short of market expectations. The print marked the joint-best reading year to date. Looking at the details of the release, November’s pickup was broad-based and spearheaded by rebounding output in the household goods and department stores sub-sectors. Moreover, momentum in food retailing plus cafes, restaurants and takeaway food services accelerated.
On an annual basis, retail sales rose 4.1% in November (October: +3.8% yoy). Accordingly, annual average retail sales growth rose to 2.4% in November (October: +2.2%). This signals an improving trend in the retail trade sector.
Panelist insight: Goldman Sachs analysts commented:
“Given changing seasonal patterns, we note higher spending in November and lower spending in December has been a feature of Australia’s retail data over recent years. As a result, we expect retail sales to decline in December and maintain our view that underlying consumption growth in Australia remains subdued.”