The struggling retail industry of Australia recovers thanks to optimistic sales data in February which likewise beat the market estimates. The recorded data also rose for a second time since its weak 2017 close.
In further details, Retail Sales added 0.6% to $24.45 billion, exceeding the market estimates of just 0.3%. According to the Australian Bureau of Statistics (ABS), this was the largest surge since November 2017.
“Combined, the rise in the discretionary areas of spending was the biggest since last November, when technology sales were inflated by the release of the new iPhone,” Chief Economist Stephen Walters, told reports.
The entire retail sector did not disappoint. Department stores lead the surge after recording 1.5% sales growth during the period. Prior to the growth, sales data for the said sector experienced heavy plunges. The clothing and household sector also reported positive figures in the said month.
"We remain cautious on the outlook for household consumption despite a decent bounce back in retail sales in February," RBC's Su-Lin Ong told reports. "A number of headwinds remain and we do not think the February print is the start of a stronger trend. The series has been choppy of late, with the iPhone-induced jump in November largely a bringing forward of expenditure and sales generally pretty lacklustre for much of the last year."
The Retail Industry began the year with a 0.1% upsurge which was further revised to 0.2% growth. Annually, this was a 2.1-3% growth which was the biggest growth since July 2017.
Additionally, it was reported that the increase rooted from the recent Chinese New Year celebration. The tradition’s impact added large increases in February. This is also because of the fact that China is the biggest source of inbound tourist arrivals of Australia. As periods go by, growth in this sector rapidly increased as well.
Adelaide Arcade is a heritage shopping arcade in the centre of Adelaide, South Australia.
It’s not all positive however. The Apartment approvals remained bearish in the reported month. This was the fifth consecutive month where it fell further.
The decline recorded in the apartment units sales of the country. The sector declined 16% in the month following January’s data growth of 40%.
"The more stable pattern in detached home approvals continued and is in modest growth mode as a counter to the slight net decline in medium/higher density approvals," David de Garis of NAB, told reports.
"Even so, continuing strong growth in the population and employment seems to be underpinning new dwelling demand as is a positive trend in residential upgrading and refurbishing activity that accounts for around one-third of dwelling investment activity."
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