Australia: Retail Sales missed expectations and trade deficit deepens – TDS

Research Team at TDS, notes that Australia’s May Retail Sales at +0.2%/m missed expectations for a +0.3%/m rise and the prior month was also revised down, from +0.2%/m to +0.1%/m.

Key Quotes

“This puts annual growth in retail sales at +3.4%, well off the 5.9%/yr growth seen 2 years ago. Household goods retailing dropped –1.1% (which has been strong) and clothing/footwear –1.2%. NSW and Vic lead the way but mining states of WA and QLD performed poorly. Overall a disappointing outcome given the RBA cut in May, but it appears low prices are keeping a lid on retail sales.

A deeper than expected Trade deficit was recorded for May at AU$2.2b as TD forecast vs the market forecast for -AU$1.8b f/c  (exports rose 1% and imports rose 2% from a month earlier). The Trade deficit for April was also worse than was initially reported by AU$200m.”