Australia: Retail sales short of expectations, trade deficit expands

Australia's retail sales for May came in at +0.2% m/m vs +0.3% exp, while Australia's trade balance for May came at a deficit of 2218m vs -1700m expected and -1579m prior. Exports were up 1% m/m, while imports saw also an increase of 2% m/m.

CURRENT PRICES - RETAIL SALES

• The trend estimate rose 0.2% in May 2016. This follows a rise of 0.2% in April 2016 and a rise of 0.2% in March 2016.
• The seasonally adjusted estimate rose 0.2% in May 2016. This follows a rise of 0.1% in April 2016 and a rise of 0.4% in March 2016.
• In trend terms, Australian turnover rose 3.3% in May 2016 compared with May 2015.
• The following industries rose in trend terms in May 2016: Other retailing (0.5%), Food Retailing (0.1%), Cafes, restaurants and takeaway food services (0.4%) and Clothing, footwear and personal accessory retailing (0.3%). Household goods retailing (0.0%) and Department stores (0.0%) were relatively unchanged in trend terms in May 2016.
• The following states and territories rose in trend terms in May 2016: New South Wales (0.4%), Victoria (0.2%), South Australia (0.3%), Western Australia (0.1%), Tasmania (0.4%) and the Australian Capital Territory (0.2%). Queensland (-0.2%) and the Northern Territory (-0.2%) fell in trend terms in May 2016.

MAY KEY POINTS - RETAIL SALES

BALANCE ON GOODS AND SERVICES

• In trend terms, the balance on goods and services was a deficit of $1,885m in May 2016, a decrease of $290m (13%) on the deficit in April 2016.
• In seasonally adjusted terms, the balance on goods and services was a deficit of $2,218m in May 2016, an increase of $433m (24%) on the deficit in April 2016.

CREDITS (EXPORTS OF GOODS AND SERVICES) 

• In seasonally adjusted terms, goods and services credits rose $188m (1%) to $26,170m. Non-rural goods rose $420m (3%).Non-monetary gold fell $186m (10%) and rural goods fell $77m (2%). Net exports of goods under merchanting remained steady at $28m.Services credits rose $31m (1%).

DEBITS (IMPORTS OF GOODS AND SERVICES) 

• In seasonally adjusted terms, goods and services debits rose $620m (2%) to $28,387m.Intermediate and other merchandise goodsrose $385m (5%), capital goods rose $182m (4%) and non-monetary gold rose $124m (29%). Consumption goods fell $81m (1%).Services debits rose $10m.