Retail turnover rises 0.4 per cent in November

Marco Green
January 13, 2019

Household Products Australian shoppers boost November retail sales to five-month highs Retail sales rose a seasonally adjusted 0.4 percent in November from October, data from the Australian Bureau of Statistics showed on Friday.

"Both of these industries were impacted by strong promotional activity in the November month, including Black Friday sales."

Retailers pulled in S$3.8 billion in all, with online sales making about 6.6 per cent of that.

There was a monthly rise in food retailing, up 0.2 per cent to $11 billion, as well as a lift for department stores, up 0.4 per cent to $1.57 billion.

This fall is partly due to high sales in November 2017 when there were major mobile phone launches.

Meanwhile, the optical goods and books segment posted a sales decline of 4.6 per cent, while food retailers' takings fell by 3.7 per cent and supermarkets and hypermarkets were down by 1.4 per cent.

Aussie seasonally-adjusted Retail Sales for November managed to beat expectations, clocking in at 0.4% versus the expected 0.3% (previous figure same).

Compared to November 2017, the trend estimate rose 3.6 per cent.

The Australian dollar effected, challenging $0.7200 on the back of the news.

The better-than-expected outcome was enough to send the Australian dollar about 20 pips higher to $0.7205, a level not seen since mid-December.

The yield on Australia's benchmark 10-year note, which moves inversely to its price, traded flat at 2.315 percent, the yield on the long-term 30-year bond remained steady at 2.843 percent and the yield on short-term 2-year stood at 1.899 percent by 04:00GMT.

The slowdown leaves annual sales growth at its lowest levels since around May 2018.

The reversal in non-food sales in 2017 was even more acute with November's 2.1% gain followed up by a 1.4% plunge in December.

Given what was seen during that period, there's a clear risk a similar scenario plays out on this occasion.

"Retail Sales data around this time of year are particularly interesting as consumer spending patterns have been shifting", says Ray Attrill, Head of FX Strategy at the National Australia Bank.

"Reports from retailers, e.g".

However, strong November results means next month's figures, which includes pre-Christmas and Boxing Day sales, could be lacklustre.

Other reports by Click Lancashire

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