Having fallen unexpectedly in July, all eyes will be on Australia’s retail sales report for August when it’s released later on this morning.
Here’s the state of play.
- In July sales fell by 0.1%, the largest decline recorded since May 2014.
- The decline, well below market expectations for an increase of 0.4%, is believed to have been caused by spending being brought forward in June in response to the small business package in the commonwealth budget.
- After jumping 2.2% in June, sales across household goods retailing tanked in July, dropping 1.9%. This fits with the idea that spending was brought forward for tax purposes.
- As a result of the weak headline figure of July, annual sales growth slowed to 4.2%, a three-month low.
- Over the past year the largest increase in sales has come from New South Wales, the ACT and Victoria – those states and territories that have enjoyed solid house price growth and strong economic conditions. Sales in Western Australia and the Northern Territory – those most exposed to the slowdown in the mining boom – both grew by less than 3%.
- In August sales are tipped to rebound with an increase of 0.4% expected.
The ABS will release the report at 11.30am AEST. Business Insider will have full coverage as soon as the data drops.