Australia: Retail sales soften again - Westpac

Matthew Hassan, analyst at Westpac, points out that the Australia’s April retail sales data came in weaker than expected, as they dipped by 0.1% in the month compared to consensus forecasts of a 0.2% gain.

Key Quotes                          

“Annual growth slowed to 2.8%yr, the slowest pace since mid 2018.”

“The timing of public holidays may have been a factor in April, with Easter falling in the month this year and the ANZAC day public holiday a week later encouraging many to take leave. While the ABS tries to adjust for these shifting seasonal effects, there may have been more of a dampening effect compared to previous years.”

“Overall the April retail update is clearly on the soft side, marking a weak start to the June quarter and with some worrying signs that wealth effect drags may be intensifying.”