Your 10-second guide to today's Australian retail sales report

Getty/Brendan Thorne

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.

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