Matthew Hassan, analyst at Westpac, notes that Australia’s retail sales surprised significantly to the upside in February, a 0.8% gain coming very much against the run of play.
Key Quotes
“Sales had risen just 0.1% in January after a 0.4% fall in December with very weak private sector business surveys suggesting conditions had remained difficult in February as well. The sales data instead showed a strong and relatively broad based gain, well above consensus forecasts of a 0.3% increase and taking annual sales growth back above 3% for the first time since October.”
“Overall the better than expected February retail sales result removes a significant downside risk to the outlook with nominal retail sales now tracking a similar pace in the March quarter to that seen in the December quarter. That is still a weak pace but does not indicate a further step down on the slowing over the second half of last year.”
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