Australia’s retail sales growth seems to have eased in October

Australia’s retail sales are expected to have weakened in October following two strong monthly expansions. According to a Societe Generale research report, retail sales growth are expected to have eased after rising 0.5 percent and 0.6 percent in the prior months. Two sub-sectors of the retail trade are expected to have recorded significantly weaker growth following recent stellar performances.

Sales at restaurants, cafes and takeaways rose 4 percent in three months, which is evidently unsustainable, even if it might have assisted by continued solid growth in tourism. Secondly, household goods sales grew 2.4 percent sequentially in September.

Sales of electrical and electronic goods rose 2.7 percent month-on-month, thanks to the launch of the new iPhone. A reversal in the sales growth is unlikely, but the expansion in October is expected to be rather weaker.

Hardware and building and garden supplies sales had also come in quite strong in August and September. On the contrary, sales at department stores are expected to have made up more ground from July’s slump, stated Societe Generale.