The ABS published their Retail Trade data for August. The seasonally adjusted estimate rose 0.1% in August 2014. This follows a rise of 0.4% in July 2014 and a rise of 0.6% in June 2014. In seasonally adjusted trend terms, Australian turnover rose 4.9% in August 2014 compared with August 2013. Most analysts were expecting around 0.4%, this month, so the result is below expectations.
There are considerable state variations, with Queensland remaining the weakest, and Victoria the strongest amongst the larger states. In terms of the states and territories in August 2014, Northern Territory rose (1.7%), Victoria (0.7%), Western Australia (0.1%), South Australia (0.0%), Tasmania (0.0%), New South Wales fell (-0.1%), Australian Capital Territory (-0.4%) and Queensland (-0.6%); all in seasonally adjusted terms.
The industry variations were as follows. Other retailing rose (1.6%), Food retailing (0.3%), Clothing, footwear and personal accessory retailing (0.3%), Cafes, restaurants and takeaway food services (0.2%), Household goods fell (-0.8%) and Department stores (-2.9%) in seasonally adjusted terms.
Many households are keeping their wallets tight shut, we think falling wages in real terms and large mortgages are partly to blame, even at current low interest rates.
