MNI DATA IMPACT: Aussie Sales Surge In March, Hospitality Hit

     SYDNEY (MNI) - Australia's retail sales rose 8.5% in March, driven by

consumer stockpiling ahead of pandemic restrictions, according to data released

by the Australian Bureau of Statistics Wednesday, the highest monthly increase

since data series began. The print was higher than expected after preliminary

data indicated a gain of 8.2%.

Spike Followed Jan-Feb Wash: The big increase in March followed a modestly

revised 0.6% rise in February (from +0.5%) and a 0.4% fall in January.

Quarterly Rise: On a quarterly basis, retail sales grew 0.7% from the last

quarter of 2019, below expectations of 1.7% gain.

Stockpiling Food: Food retailing showed the biggest increase, up by 24.1% as

consumers stockpiled items amid scenes of panic buying. Household goods

retailing jumped 9.1% as consumers embraced home renovation projects, often

around home offices.

Hospitality Shutdown: The cafe, restaurant and takeaway food sector slumped

22.9% after outlets were closed for the second half of the month due to the

Covid-19 restrictions. Sales of footwear, clothing and personal accessories slid

22.6%.

Quiet Confidence At RBA: The Reserve Bank of Australia's view is that the March

sales show domestic consumers are confident of spending due to savings on

mortgages due to low interest rates. Strong retail sales play into the RBA's

confidence about the likely strength of Australia's recovery.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com