October 31, 2024 01:24 GMT
AUSTRALIA DATA: Retail Spending Recovering Gradually As Real Incomes Improve
AUSTRALIA DATA
Australian retail sales have been gradually trending higher since the end of last year and Q3 appears to have received support from tax cuts, energy rebates and rising real wages as inflation moderates. Q3 retail sales volumes rose 0.5% q/q, in line with consensus after falling 0.4% in Q2, to be up 0.2% y/y, the first positive since Q1 2023. Consumption remains an area of concern though and comments from the RBA next week will be watched closely.
Australia quarterly retail sales y/y%
Source: MNI - Market News/Refinitiv/ABS
- The ABS observes that “recent spending patterns continue to show that consumers remain price conscious and responsive to discounting.”
- Retail prices rose 0.6% q/q in Q3 down from 1.0% in Q2. The ABS notes that Q3 retail volumes per capita fell 0.1% q/q, the ninth consecutive quarterly decline. The working age population grew 0.6% q/q in Q3.
- September retail values increased 0.1% m/m, softer than expected but the sixth straight monthly rise leaving the annual rate at 2.3% y/y. 3-month annualised momentum is robust at over 4%. August rose 0.7% m/m helped by warmer weather.
- Last month was driven by restaurants (+0.4%) and household goods (+0.5%) but clothing, department stores and other retailing showed the strongest 3-month momentum, although all major categories are positive.
Australia monthly retail sales A$mn
Source: MNI - Market News/ABS
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