MNI DATA ANALYSIS: Australia Retail Sales Accelerating In Q2

By Sophia Rodrigues

     SYDNEY (MNI) - Australia's retail sales rose more than expected in May, and

followed an upward revision in the month before, suggesting a pick-up in

household consumption in Q2 after a subdued Q1.

     The data would comfort the Reserve Bank of Australia as it shows that

consumption is supported by jobs growth and isn't affected by the slowing in the

housing market. 

     Data published by Australian Bureau of Statistics Wednesday showed retail

sales rose 0.4% m/m in May, following an upward revision in April sales to +0.5%

from +0.4%. The outcome best MNI median forecast for a 0.2% m/m rise and was

near the top end of the forecast range.

     In trend terms, retail sales rose 0.3% for the fourth month in a row.

     The latest growth was driven by a strong rise in clothing and accessories

which rose 2.2% m/m, followed by a 3.9% m/m rise in department store sales.

Food-related categories underperformed with food retailing slowing in May and

food services declining 1.0% m/m. Household goods retailing also slowed to just

0.1% m/m growth versus 0.7% in April.

     Below is table for retail trade data for May:

                                                  May                      April

--------------------------------------------------------------------------------

                                   (M/M %, seasonally         (M/M %, seasonally

                                            adjusted)                  adjusted)

Retail Sales                                     +0.4   +0.5 (revised from +0.4)

MNI Median                   +0.2 (range 0.0 to +0.5)

Retail Sales (Trend)                             +0.3          +0.3(no revision)

Food Retailing                                   +0.3                       +0.4

Household Goods                                  +0.1                       +0.7

Clothing, Footwear etc                           +2.2                       -0.9

Department Stores                                +3.9                       -0.5

Other Retailing                                  -0.1                       +1.0

Cafes, Restaurants,

Takeaways                                        -1.0                       +1.3

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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