Australia October retail sales beat forecasts on higher discretionary spending
2024.12.01 20:47
Investing.com– Australian retail sales climbed more than expected in October, recording third consecutive month of rise, as consumer spending was boosted ahead of the Black Friday sales with retailers offering early discounts.
rose 0.6% month-on-month in October, after rising 0.1% in September and 0.7% in August, data from the Australian Bureau of Statistics showed on Friday.
Markets were anticipating a 0.4% increase in October.
“The rise in discretionary spending was driven by online discounting events while people also spent more on electrical goods, particularly televisions and other audio-visual equipment,” Robert Ewing, ABS head of business statistics, said.
The rise was also helped by food-related industries. Cafes, restaurants and takeaway food services had its third straight monthly rise, while food retailing bounced back, having seen a small fall last month, data showed.
However, retail spending has slowed over the past year, amid interest rate hikes and sticky inflation. Consumer price inflation in Australia stood at 2.1% year-on-year in October, its lowest since mid-2021. Key factors included substantial reductions in electricity prices due to government rebates, offsetting rising rents and housing costs. However, core inflation remained elevated, driven by persistently strong price increases in services and housing.
On the monetary policy front, the Reserve Bank of Australia (RBA) has kept interest rates steady following aggressive hikes through 2022 and 2023. The cash rate remains at 4.35%, reflecting a cautious stance as inflation stabilizes.
