MNI 5 THINGS: Aus Nov Retail Sales Receive Black Friday Boost

By Lachlan Colquhoun

     SYDNEY (MNI) - Australian retail sales grew 0.4% m/m in November, just

ahead of the 0.3% m/m consensus expectation.  

     Here are five takeaways from today's data, released by the Australian

Bureau of Statistics:

     Retail sales register solid rise: Australian retail sales rose 0.4% on the

month in November, following a 0.3% gain in October and beating market

expectations for a repeat 0.3% expansion. November's increase in retail sales

was the strongest in seven months.

     Christmas came early: Black Friday retail promotions and early shopping for

Christmas had a positive impact on Australian consumer spending in November,

snapping several months of flatter results with a positive surprise for the

market. The monthly increase in sales was much less buoyant than the 1.3% rise

in November 2017, which was, however, followed by a drop in December.    

     RBA watching closely: Today's results are consistent with the Reserve Bank

of Australia (RBA) outlook, which is for a moderate improvement in consumer

sentiment and spending to flow through into growth and inflation this year.

Other recent economic indicators - notably building approvals, which fell by

9.1% in November - have gone against the RBA script, but today's result is

clearly more positive and provides a counter argument to suggestions the economy

has stalled. 

     Online sales hits new record: Australians spent A$1.89 billion through

online channels in November, a new record and 17.5% higher than in October.

Although online spending still only accounts for 6.6% of total retail turnover, 

the increase was much stronger than for department store sales, which rose by a

seasonally adjusted 0.4% in November. 

     New South Wales consumers in the doldrums: NSW is traditionally the leader

in the Australian economy, but retail sales declined by 0.1%, falling for a

second successive month. The state's housing market has been hit strongly by the

downturn in property prices, and this appears to be weighing on consumer

sentiment.

--MNI London Bureau; +44 207-862-7489; email: ukeditorial@marketnews.com

[TOPICS: MALDS$,M$A$$$,M$L$$$]