Australia: Retail flat lines in October – ANZ
|ANZ analysts note that Australia’s annual growth in retail sales fell to 2.1% in October, marking its two-year low and well below the medium- and long-term averages for retail growth.
Key Quotes
“Over the month, food categories – particularly dining out (1.1% m/m), liquor (0.8% m/m) and specialised food retailing (1.7% m/m) – saw growth. In contrast, non-food discretionary categories broadly went backwards, particularly fashion, department stores and recreation goods.”
“Annual growth results align with the discord between food/essentials and discretionary categories. Food retailing grew 3.1%, pharmaceuticals/ cosmetics/toiletries grew 5.4%, while household goods and department stores went backwards (-0.2% y/y for each) and fashion grew modestly (1.2% y/y). This speaks to structural budget pressures on households, which are focusing on “essentials” and small luxuries (eg dining out, fashion goods) and less on the bigger “nice to haves” (eg appliances, furniture, recreation products).”
“Monthly growth was weakest in the South East. NSW, Vic and SA all went backwards. Qld (3.7% y/y), the ACT (4.3% y/y) and Tas (3.5% y/y) led annual growth.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.