Latest data on retail spending has turned all heads towards the sector while sending out encouraging signals in terms of Australia’s economic position. Retail spending jumped up 0.5 per cent in the month of October 2016 to $25.6 billion while the consensus expectation was only 0.3 per cent. This came at the back of increased spending on food and household goods. The household goods spending surged by 0.7 per cent and the food retailing spending was up 0.6 per cent in October. It is noteworthy that food retailing sales account for about 40 per cent of total retail sales. On the other hand, clothing and department store sales sat uncomfortably with a drop of 0.4 per cent.
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Retail Turnover (Source: Australian Bureau of Statistics)
Queensland (up 0.7 per cent), New South Wales (up 0.3 per cent), Victoria (up 0.4 per cent), South Australia (up 0.2 per cent), the Australian Capital Territory (up 0.6 per cent), Western Australia (up 0.1 per cent), Tasmania (up 0.2 per cent) and the Northern Territory (up 0.2 per cent), all rose in trend terms in October 2016. In seasonally adjusted terms, Queensland (up 0.8 per cent) and the Australian Capital Territory (up 0.9 per cent) did well.
The month of September 2016 witnessed a rise of 0.6 per cent and market was not expected a similar rise in October. Even, the month of August witnessed a rise of 0.6 per cent. Thus, sales have been upbeat for the third consecutive month, and sales over the past three months have been at an annual growth rate of 6.8 per cent.
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