Australia: Retail sales growth flat in July

Nominal retail sales growth in July was flat over the previous month in seasonally-adjusted terms, following June’s 0.4% expansion. This was below market expectations of a 0.3% rise. Tightening lending conditions, subdued wage growth and falling house prices were likely behind July’s disappointing print.

Lower sales of household goods; clothing, footwear and personal accessory; and lower sales in department stores offset higher sales in cafes, restaurants and takeaway food services; and food.

In annual terms, retail sales expanded 2.6% in July, matching June’s increase. Consequently, growth in annual average retail sales in July was unchanged at June’s 2.5%.

Australia Private Consumption Forecast

FocusEconomics Consensus Forecast panelists see private consumption growing 2.6% in 2018, which is unchanged from last month’s forecast. For 2019, the panel expects private consumption to expand 2.5%.