Australia: Retail sales important for gauging consumer sentiment - Westpac

In view of analysts at Westpac, Australia’s August retail report shapes up as a particularly important one for gauging the consumer sentiment.

Key Quotes

“Retail sales have stalled through June-July suggesting the Q2 rebound from a weather affected Q1 has faded quickly and that 'underlying' conditions remain weak. The August update will give a clearer indication of just how weak.”

“Consumer sentiment remained soft in August with finances again under pressure and consumer caution elevated. While the labour market has seen solid job gains, weak wages growth and structural shifts are seeing a muted impact on incomes. Business surveys also point to weaker retail conditions through July-August although spending on 'non retail' consumer services still appears to be buoyant. Overall that suggests a disappointing gain. We expect retail sales to be up just 0.2% in the month.”