Australia’s retail sales drop -0.4% in December, a big miss on expectations

Australia's consumption, as represented by retail sales, dropped sharply in the month of December, missing estimates, the Australian Bureau of Statistics (ABS) reported on Tuesday. The retail sales arrived at -0.4 percent month-on-month, compared to the forecast of -0.1 percent and down from previous month's reading of 0.4 percent. 

December Key Points (via ABS)

Current Prices 

The trend estimate rose 0.2% in December 2018. This follows a rise of 0.2% in November 2018 and a rise of 0.2% in October 2018.

The seasonally adjusted estimate fell 0.4% in December 2018. This follows a rise of 0.5% in November 2018 and a rise of 0.3% in October 2018.

In trend terms, Australian turnover rose 3.2% in December 2018 compared with December 2017.

The following industries rose in trend terms in December 2018: Food retailing (0.2%), Clothing, footwear and personal accessory retailing (0.3%), Other retailing (0.1%), Cafes restaurants and takeaway food services (0.1%), and Department stores (0.1%). Household goods retailing was relatively unchanged (0.0%).

The following states and territories rose in trend terms in December 2018: Queensland (0.5%), Victoria (0.2%), Western Australia (0.3%), the Australian Capital Territory (0.3%), South Australia (0.1%), and Tasmania (0.1%). New South Wales (-0.1%), and the Northern Territory (-0.4%) both fell in trend terms in December 2018.