Good news, everybody: retail sales rose strongly in November indicating that Australia’s transition to a more sustainable, less mining-heavy economy is in the works.
The Australian Bureau of Statistics today reported that retail turnover rose a seasonally adjusted rise 0.7% in November, more than double the 0.3% expected by the market.
More important than any one month’s numbers though, is the trend in the data. There is more good news there with retail sales continuing to hold a healthy 0.5% per month for the third month in a row.
The key increases in trend terms according to the ABS were:
- Cafes, restaurants and takeaway food services (1.1%),
- Other retailing (0.9%),
- Food retailing (0.3%),
- Clothing, footwear and personal accessory retailing (1.2%),
- Department stores (0.5%) and
- Household goods retailing (0.1%).
The data also showed that all states saw positive growth in November in trend terms.
It is unequivocally good news for the Australian economy as household spending is a pre-condition for an economic recovery and lift in economic growth.