The Australian Bureau of Statistics (ABS) has just released retail sales figures for the month of February, which registered a seasonally-adjusted 1.3% increase over the month versus an expected 0.3% rise. The result was strengthened by an upward revision to December’s figures to 1.2% from 0.9% previously.
Retail sales appear to have fully recovered after a correction in the wake of the one-off spike caused by compensation payments for the introduction of the carbon tax, with annual sales growth at 4.6% (3.4% trend) currently (see next chart):
Retail sales remain relatively weak in the southern states and territories and relatively strong in the resource states, with sales in New South Wales also strong, but Northern Territory weakening:
Finally, monthly and annual retail sales were positive is all categories:
So overall, a strong result. Clearly a post Christmas bounce is in effect after a subdued December but we might also conclude that the recent interest rate cuts and house price rises are working to stimulate the retail sector.
