Nov Retail Sales Surge On Black Friday Sales

Nov retail sales comfortably beat expectations. The 2.0% m/m rise compared with a +1.2% forecast and a revised -0.4% fall in October. In y/y terms spending is up 2.2%, so only slightly up from recent lows.

• Discretionary spending was the clear standout, with household good retailing up 7.5% m/m, department store sales were +4.2%. Apparel was +2.7%. Food and cafe and restaurant spending recorded a more modest +0.4%m/m rise.
• The bounce in Nov was heavily influenced by sales in the month. The ABS noted: "Black Friday sales were again a big hit this year, with retailers starting promotional periods earlier and running them for longer, compared to previous years.
• “The strong rise suggests that consumers held back on discretionary spending in October to take advantage of discounts in November. Shoppers may have also brought forward some Christmas spending that would usually happen in December."
• Hence, we may see some payback in Dec on the back of today's result.
• Other data showed building approvals rose 1.6% m/m, versus a -2.0% projected drop. The Oct rise was 7.2%.