MNI DATA IMPACT: Australia Retail Sales In Negative Territory

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's retail sales turnover at current prices fell

0.1% in seasonally adjusted terms in April, following a 0.3% gain in March.

     Here are four other points of note in the release by the Australian Bureau

of Statistics.

Non-food sales slump 

Non-food sales are seen as a more accurate measure of discretionary spending,

and fell by a greater 0.2% m/m.

NSW and Victoria in steep slide 

Sales in the most populous states NSW and Victoria both fell by 0.4%, the first

time they have been in negative territory since December. These two states have

been the hardest hit by the recent falls in the property market.

Housing sector in doldrums 

Household goods retailing was in negative territory again, down a hefty 0.9%.

Recovery on the way? 

The Reserve Bank of Australia cut official interest rates by 25 basis points

Tuesday in an effort to stimulate the economy. The hope is that banks will pass

on interest rate cuts to consumers, who would then have more disposable income

to spend in the retail market.

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

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