Data Snapshot: Retail Sales - Retail Lift A Flash in the Pan?

• Retail spending was stronger than expected in May, rising by 0.4%. This followed an upwardly revised increase of 0.5% in April (previously reported as a 0.4% increase).

 

• Department stores, which have struggled in recent years, posted the strongest sales of all sectors in May. In May, the weather became cooler after months of abnormally warm weather, potentially driving sales of winter goods.

 

• Mid-year sales at department stores began in late May. The degree to which price discounting drove the lift in retail sales in May will be revealed in next month’s retail sales release, which includes the quarterly retail sales volumes.

 

• Retail sales rose in all the major States and territories in May, with the exception of Western Australia where sales fell 0.5% in the month. In annual terms, the Northern Territory had the strongest growth (4.3%), followed by Tasmania (3.8%), Victoria (3.7%), NSW (2.9%), South Australia (2.4%), the ACT (2.2%) and Queensland (2.0%). Retail sales fell in Western Australia (-0.7%) in the year to May.

 

• The outlook for retail sales remains subdued given slow wage growth, high levels of household debt and the slowdown in housing. Solid jobs growth over the past year, however, is expected to support retailing.

 

Please see the attached report for more information.

 

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