Retail sales for December are out and those that think interest rates are firing up a new binge have some answering to do. Monthly sales were down -0.2% versus expected 0.3% rise. November was also revised down to 0-.2:
Year on year growth was a lousy 2.3% and sliding.
The falls were across categories and non-mining states, from the ABS:
- The seasonally adjusted estimate fell 0.2% in December 2012. This follows a fall of 0.2% in November 2012 and a fall of 0.1% in October 2012.
- In trend terms, Australian turnover rose 2.5% in December 2012 compared with December 2011.
- The following industries fell in trend terms in December 2012: Other retailing (-0.5%), Household goods retailing (-0.4%), Cafes, restaurants and takeaway food services (-0.3%) and Clothing, footwear and personal accessory retailing (-0.2%). Food retailing (0.3%) and Department stores (0.1%) rose in trend terms in December 2012.
- The following states and territories fell in trend terms in December 2012: New South Wales (-0.2%), Victoria (-0.2%), South Australia (-0.4%), the Australian Capital Territory (-0.3%) and Tasmania (-0.2%). Western Australia (0.4%) and Queensland (0.1%) rose in trend terms in December 2012. The Northern Territory was relatively unchanged (0.0%).
Unconventional Economist will return with the quarterly details.
No surprises, we’re disleveraging/deleveraging as deflation looms.
Best drunk Santa pic
Haha good pic – just a warning to others though that it’s barely safe for work…
Which is why it not on the post.
Less home price growth > less wealth effect > less home equity loans > lower spending across the board. Nuff said.
Any opinions on why retail sales are in decline but new car are booming?
Better finance options?
Retail shopping on a >15% credit card, but many brands will now let you finance a new car for less than 2% – which is what Toyota, Renault, Nissan, Honda, Holden and others have offered at times over the past few months.
Leasing I’d say. As long as you earn enough, it’s quite an economical way to stay in a new car every 3 years
My guess would be the rise of self-employment. The tax advantages enable you to support a much better/newer car than otherwise.
Del As I hear it once you are on the leasing treadmill you are on it. Low monthly payments mean you end up with a huge residual which you cannot pay….so you have to have a new car with a new lease.
Your observation ties in with Velocity ‘Better finance options’
HnH Speaking as a business owner I can’t justify a new car. Maybe I’m a bit different!
However an observation made to me a few days ago the leases will soon be running out on all the cars utes and vans etc bought under the incentives given by Rudd and Co post GFC. Will we get yet another spike?
Just meandering!
and the environmental impact of getting a new car every 3 years!
But what we really want to know is, did Gerry Harvey’s punt on air-conditioners pay off this summer or is Harvery Norman toast?