‘It’s good to see the bounce-back but we don’t expect to see a repeat as underlying consumption growth is still weak.’ – Su-Lin Ong, RBC Capital
Australian retail sales rebounded markedly in April, fresh figures showed on Wednesday. The Australian Bureau of Statistics reported that retail sales climbed 1.0% in April on a seasonally adjusted basis, following the preceding month’s downwardly revised drop of 0.2% and topping analysts’ expectations for a 0.3% gain. April marked the first retail trade rise in the past four months. However, the increase was mainly attributed to temporary factors. The stronger-than-expected data release is set to please the Reserve Bank of Australia, which was concerned about surging real estate prices. The café, restaurants and take away food services sector posted a 1.1% sales increase. A 1.2% sales climb was seen in food retailing, whereas department stores posted a 2.5% sales rise during the reported month. Sales of clothing and footwear advanced 0.3%, whereas sales of household goods increase 0.4%, following two consecutive months of declines. Analysts suggested that April’s rebound was the answer to March’s cyclone that hit the Queensland State. Sales in Queensland jumped 2.4% in April after five straight months of drops.
