October retail sales rose 0.6% m/m, stronger than expected, to be up 3.4% y/y, the highest growth rate since May 2023. 3-month momentum also increased. The ABS said that there was discounting ahead of November’s Black Friday sales to encourage consumers. In 2024 to date, only March saw a drop in retail sales. Rising real incomes and discounting have supported spending this year. The RBA seems firmly on hold for now and the start of easing may be at least almost six months away.
Australia retail sales %
Source: MNI - Market News/ABS
- Sales in 2023 moved sideways but this year they are now up 3.7% YTD.
- The strength in October retail spending was driven by household goods and other retailing rising 1.4% m/m and 1.6% m/m respectively. Restaurants and food retailing posted modest 0.3% m/m increases, while department store and clothing sales fell.
- Growth in retail sales was solid across Australia.
- October household spending, which includes services, is released on Thursday.
Retail sales A$mn
Source: MNI - Market News/ABS
