Aussie retail sales continue upward march

The Australian Bureau of Statistics (ABS) has released retail sales data for January, with sales turnover rising 0.5% month-on-month to be up 10.6% compared with January 2020.

The next chart shows the strong rebound after April’s record 17.7% monthly decline caused by the national coronavirus lockdown:

Retail sales have rebounded strongly after declining sharply in April 2020 amid the national coronavirus lockdown.

Food retailing (+1.6%) and Other retailing (+1.4%) drove the monthly rise, offsetting falls across Clothing & footwear (-3.6%), Cafes & restaurants (-0.8%) and Department stores (-0.4%):

Retail sales by sub-industry were volatile in January, with strong rises and falls recorded.

Finally, the rise in retail sales was broad-based, with all jurisdictions other than Queensland reporting rising sales turnover in January:

All states and territories except for Queensland reported rising retail sales in January.

As noted earlier today, I expect retail sales to remain strong in 2021 on the back of the immense household savings stockpile and the ‘wealth effect’ from rising property values.

Unconventional Economist
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