Australia retail sales dropped 0.5% in December

Australia Bureau of Statistics (ABS) reported a 0.5 percent month-on-month drop in December retail sales today. Economists were expecting a 0.2 percent contraction, following the previous month's upwardly revised 1.3 percent reading. Also, retail sales ex-inflation came-in at 0.9 percent quarter-on-quarter in 4Q versus 1.0 percent expected and 0.1 percent in 3Q.

DECEMBER KEY POINTS

CURRENT PRICES 

• The trend estimate rose 0.2% in December 2017. This follows a rise of 0.2% in November 2017 and a rise of 0.2% in October 2017.
• The seasonally adjusted estimate fell 0.5% in December 2017. This follows a rise of 1.3% in November 2017 and a rise of 0.5% in October 2017.
• In trend terms, Australian turnover rose 2.0% in December 2017 compared with December 2016.
• The following industries rose in trend terms in December 2017: Food retailing (0.3%), Cafes, restaurants and takeaway food services (0.4%), Household goods retailing (0.2%), Clothing, footwear and personal accessory retailing (0.5%), and Department stores (0.1%). Other retailing (-0.2%) fell in trend terms in December 2017.
• The following states and territories rose in trend terms in December 2017: Victoria (0.5%), New South Wales (0.1%), South Australia (0.6%), Queensland (0.1%), and Tasmania (0.2%). Western Australia (0.0%) and the Australian Capital Territory (0.0%) were relatively unchanged. The Northern Territory (-0.2%) fell in trend terms in December 2017.

VOLUME MEASURES

• In volume terms, the trend estimate for Australian turnover rose (0.5%) in the December quarter 2017.