Australian Retail Sales Slump in December: ABS Data Reveals

Summary

  • The latest data from the Australian Bureau of Statistics (ABS) reveals a 2.7% decline in retail sales in December, on a seasonally adjusted basis.
  • Despite a 1.6% increase in November boosted by Black Friday sales, projections had anticipated a minimum 1% decline in December.
  • A marginal increase of 0.8% was observed from the previous year, with retail sales reaching A$35.2 billion ($23.27 billion).
  • This growth is deemed very weak in light of Australia’s rapid population increase, and such a performance is typically characteristic of recession periods.

Details on Retail Sales

According to recent data released by the Australian Bureau of Statistics (ABS) on Tuesday, retail sales saw a 2.7% drop in December on a seasonally adjusted basis. This followed a 1.6% growth in November, catapulted by the Black Friday sales, but analysts had envisioned a fall of more than 1% in December.

Yearly Sales Growth Rates

A retail sales figure of A$35.2 billion ($23.27 billion) was recorded, merely a slight 0.8% rise from the year prior. Such an outcome, which usually occurs in economic downturns, is deemed extremely low considering the high rate of population growth in the country.

The exchange rate stands at $1= 1.5124 Australian dollars.

Potential Market Impact

The weak retail sales data may negatively affect the Forex market and influence trading strategies associated with Australian-based assets.

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