Retailers reported a 0.3% lift in sales in October, in line with market expectations but better than Westpac’s forecast of a 0.1% gain. While sales growth is still not strong its looking a touch better than it did mid year, annual growth having lifted from 2.9% in June to 3.5% in October.
The detail looks to be a little more uneven with a strong rise for clothing (2.6%mth) and a solid 0.6% gain for household goods but mixed results for ‘small ticket’ discetionary storetypes, ‘other retail’ up 0.5% but cafes and restaurants down 0.9%. Basic food retail rose 0.2%.
The picture was also more mixed by state with a 0.4% decline in sales in NSW nortable given the more advanced house price correction in Sydney.
Overall though the gain is of some relief given yesterday’s disappointing September quarter update on wider consumer spending.
