The Australian Bureau of Statistics (ABS) has just released retail sales figures for the month of October, which registered a 0.5% seasonally-adjusted increase in sales over the month versus an expected 0.4% rise. Annual sales growth clocked in at 3.6%:
Monthly retail sales rose in all states and territories, except for South Australia and the Northern Territory, whereas annual sales growth has clearly weakened in Western Australia:
Four of the six major components registered positive sales growth in September. The exceptions were household goods retailing, which were flat, and department store sales, which fell:
You can see from the next chart that the recent improvement in sales has been driven by discretionary retail, where growth has picked-up from depressed levels, although it remains below non-discretionary (food) retailing:
Overall, the pick-up in discretionary retail sales suggests that consumers might be unlocking their purse strings, which is a welcome sign for the industry in the lead-up to Christmas.
unconventionaleconomist@hotmail.com
