Figures from the Australian Bureau of Statistics (ABS) show that for the second consecutive month, retails spending in the country has risen, boosted in large part by price cuts and a strengthening economy.
According to the data, retail sales during June increased by 1 per cent, beating market estimates of 0.6 per cent.
Michael Turner, currency strategist at RBC said the trend suggested Australians were making the most of discounts offered by retailers.
“All up it was a pretty encouraging bit of data, it seem that over the past couple of years turnover had been occurring, it’s just that prices have had to be pretty moderate for that to happen. That’s also consistent with what has happened with retail sales up 1.4 per cent in the quarter, but volumes were pretty firm.” Mr. Turner said.
As well as releasing retail data, the ABS also released figures for international trade during June, which showed a moderate $9 million surplus for the balance of goods and services. Consensus estimates had predicted a deficit of $400 million.
According to Mr. Turner, exports from rural areas received a boost which was offset by softness in exports for non rural goods.
“That would probably suggest a slowing in demand, particularly in China. All up that helped post a small surplus in June.” he said.
This article first appeared on Money-AU, Australia’s leading personal finance site