Australia data – Retail Sales May 2024: +0.6% m/m (exp +0.2%)

Retail Sales come in stronger than expected.

Comments from the Australian Bureau of Statistics playing down the strong results:

• “Retail turnover was boosted this month by watchful shoppers taking advantage of early end-of-financial year promotions and sales events.
• “Retail businesses continue to rely on discounting and sales events to stimulate discretionary spending, following restrained spending in recent months.
• “Despite the seasonally adjusted rise, underlying spending remains stagnant with retail turnover flat in trend terms. Compared to May 2023, trend is only up 1.5 per cent.”

Still, the result is MUCH better than the consensus had expected and has given AUD a pop.

A better showing like this from the consumer will not prompt an RBA rate hike, but it will give them some comfort to hike if they believe they need to do so to combat steady, and high, inflation.

This article was written by Eamonn Sheridan at www.forexlive.com.