WAIT: Were Retail Sales In December Actually Really Strong?

Girls women shopping london

Photo: Samir Hussein/Getty Images

Earlier we mentioned weak December retail sales.They were expected to grow by 0.3% but only grew by 0.1%.

Ex-autos, they were expected to grow by 0.3% but actually shrank by 0.2%.

Bummer right?

But wait, there’s more!

As Todd Sullivan points out, November retail sales were revised from 0.2% growth to 0.4% growth.

So instead of growth of 0.2% (November) and 0.3% (December) we got 0.4% (November) and 0.1% (December) which works out to virtually the same two-month growth.

What’s more, as Goldman observed, October was unusually big due to the iPhone 4S released — thus pulling forward demand.

Bottom line: This could easily be construed as a very solid report without any real blemishes.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.