Investors might be advised to be cautious about the latest Australian retail trade figures that showed a higher than expected 0.4 percent gain in August – publicly listed retailers still face a sluggish domestic economy and longer-term retail trends highlight that consumers still favour thrift over extravagance.
Latest Australian Bureau of Statistics figures on Tuesday showed retail spending recorded its second consecutive monthly rise but overall growth in the sector remains flat to negative.
The 0.4 percent August rise was slightly above the market forecast of 0.3 percent and followed a 0.1 percent rise in July and a flat result in June. It was the strongest monthly increase in sales since February, however, retail spending is only growing at a subdued 2.3 percent in annual terms, which is below trend.
(Source: The Sydney Morning Herald Online )