Australia: Q2 retail strong; no cliff in July – ANZ

Dhwani Mehta FXStreet

Analysts at Australia and New Zealand (ANZ) banking group provide their afterthoughts on the Australian Q2 Retail Sales released early Thursday.

Key quotes

“Retail volumes rose 1.4% q/q in Q2 this year, despite very strong inflation (+1.7% q/q for retail products) and recession-level consumer confidence.”

“Dining/takeaway volumes grew 8.6% q/q, department store volumes grew 3.0% q/q and clothing grew 3.9% q/q, both building on strong Q1 growth and casting doubt on whether a discretionary spending squeeze is in progress so far.“

“ANZ-observed spending for July has not fallen off a cliff, with discretionary spending categories such as non-food retail, dining/takeaway and travel excluding petrol showing continued momentum.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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