Australia retail sales rose 0.2% mom in September, below expectation of 0.4% mom. Ben James, Director of Quarterly Economy Wide Surveys, said there was “mix of results at the industry level”.
Rises were seen in other retailing (0.8%), cafes, restaurants and takeaway services (0.6%), and food retailing (0.1%). These rises were slightly offset by a fall in clothing, footwear and personal accessory retailing (-0.5%) and department stores (-0.2%). Household goods (0.0%) was relatively unchanged.
Overall the report suggested weak consumer spending through Q3 and there was little lift from tax refunds. Some greater fiscal stimulus would be needed to boost wage growth and spending. And without that, another RBA cut early next year would be likely and necessary.
