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ANZ analysts note that the weakness in retail sales continued in May for the Australian economy, with only a slight tick-up after the April decline as it printed 0.1% m/m in May, below market expectations.

Key Quotes

“Annual growth declined for the third straight month, coming to 2.4%.”

“Furniture/homewares and electrical goods led monthly growth, in keeping with the “holiday effect”, as households tend to delay purchases of home-related goods during the April holidays. Liquor, recreation, department stores and specialised food all saw declines in line with expected normalisation after holiday spending in April.”

“Growth in April was concentrated in ACT, VIC and SA, while a strong monthly result in NT and sales contraction in QLD bucked their annual trends.”