Australian retail sales came in slightly weaker than expected in November, underscoring a cautious tone among consumers despite a significant boost from Black Friday sales.
Data from the Australian Bureau of Statistics (ABS) showed sales rising by 0.8% from the previous month, missing forecasts for a 1% gain. The figure marked an improvement from October’s downwardly revised 0.5% increase.
Robert Ewing, ABS head of business statistics, commented: “Black Friday sales events proved once again to be a big hit, with widespread discounting and higher spending across all retail industries.
“The popularity of Black Friday sales continues to grow with promotional activity now stretching across the entire month of November, not just solely focused on the Black Friday weekend.”
Retail sales, accounting for over half of Australia’s gross domestic product, are a crucial consideration for the Reserve Bank of Australia (RBA). The RBA has flagged household spending as a significant uncertainty as it maintained its target interest rate at 4.35% last year, while neighbouring central banks, such as New Zealand’s, initiated rate cuts.
The figures come after data released Wednesday showed underlying price pressures easing in November.
Minutes from the RBA’s December meeting indicated growing confidence that inflation is aligning sustainably with the target. However, policymakers cautioned that declaring victory over inflation remains premature.
The ABS plans to discontinue retail sales data publication by mid-2025, transitioning to a more comprehensive monthly household consumption report, with the first edition due on Friday.