The Australian Bureau of Statistics (ABS) has just released retail sales figures for the month of January, which registered a 1.2% seasonally-adjusted increase in sales over the month, which met economist’s expectations. Annual sales growth clocked in at a solid 6.2% – the highest rate of growth since late-2009:
Monthly retail sales rose in six jurisdictions and fell in two:
The increase in retail sales was also broad-based across segments, will all six categories recording rises in January:
You can see from the next chart that the pick-up in recent sales has been driven mostly by discretionary retail, where growth has accelerated from previously depressed levels:
Overall, the pick-up in discretionary retail sales accords with yesterday’s national accounts release, which registered a pick-up in consumption spending and a sharp reduction in the household savings rate. Consumers have enjoyed a Christmas binge. If the current growth rate lasts through the next few months then it will be fair to conclude that consumer attitudes have shifted to a less conservative point-of-view, contrary to sentiment surveys.
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