FXstreet.com (Barcelona) - After today’s Australia retail sales and building approvals reports for August, NAB Economist David deGaris, notes that "these soggy areas of the economy portray softer activity through the September quarter too." David stresses that retail sales "were no doubt buoyed through May and June by the Federal Government’s pre-carbon tax handouts and there was bound to be some payback this quarter and that’s pretty much as it’s playing out."
Mr. de Garis adds: "It’s hard to escape the conclusion that retailing has done it tougher in the September quarter. Based on the reports for July and August and with only one monthly report to go for the quarter, retail sales so far this quarter are up a modest 0.3% this quarter, payback after the welcome 1.4% rise in nominal sales in Q2, supported as it was by the cash handouts. That points to very little if any volume growth in retailing in the quarter and thus a muted at best contributor to Q3 GDP."
Mr. de Garis adds: "It’s hard to escape the conclusion that retailing has done it tougher in the September quarter. Based on the reports for July and August and with only one monthly report to go for the quarter, retail sales so far this quarter are up a modest 0.3% this quarter, payback after the welcome 1.4% rise in nominal sales in Q2, supported as it was by the cash handouts. That points to very little if any volume growth in retailing in the quarter and thus a muted at best contributor to Q3 GDP."
