Retail rebounds in January but sales flatlining
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The news: Retail sales bounced back in January following a significant slide in December. However, the underlying trend is flatlining.
The numbers: Latest Australian Bureau of Statistics data showed retail turnover increased 1.1% on a seasonally adjusted basis in January. This compares to a 2.1% decline in December and a 1.5% jump in November. In trend terms, the January figure was flat.
All non-food related industries rebounded over January, with the biggest increase in the clothing, footwear and personal accessories category (2.4%). Household goods were up 2.3% and department stores jumped 1.7%.
While the food industry was the only sector to fall, down 0.1%, it was also the only sector to show growth in December.
The context: Retail figures are an important read as economists, market and policymakers look to get a sense for spending momentum in the market. But Black Friday sales are a spanner in the works for how to interpret these figures, skewing consumer behaviour and bringing extra volatility to the end of year figures.
What they said: “Retail turnover was unchanged in trend terms in January. This means there has been no growth in retail turnover when we look through the volatility of the past few months," ABS head of retail statistics Ben Dorber said.
"Rather, spending patterns have shifted because of changes in seasonality around Black Friday as consumers took advantage of discounting in response to cost of living pressures."
The source: ABS media release
