"Overall, these data provide some tentative reasons to believe that GDP growth in the second quarter is unlikely to be anywhere near as good as the 1.1 per cent quarterly rise in the first".
-Paul Dales, Capital Economics
Australian retail sales rose modestly in April, led by strength in cafes, department stores and clothing. In a report, Australian Bureau of Statistics stated that Australian retail sales rose to a seasonally adjusted 0.2%, as soft consumer demand, a warm autumn and aggressive discounting took their toll after a relatively strong March. The growth rate compares with a 0.4% increase for March, and fell short of economists' forecasts of 0.3% this time. The Australian Bureau of Statistics reported that turnover at cafes, restaurants and takeaway stores led the way with a 1% increase, followed by clothing, footwear and accessories, with 0.5% growth. However the situation with food retailers, such as supermarkets, appeared to be bad, as sales in this segment were down 0.3% for the month.
Meanwhile, a separate research showed that Australia's trade balance rose more-than-expected last month. Australia's trade balance increased to a seasonally adjusted -$1.579 billion, against market expectations of a -$2.11 billion print. That is a fall of $392 million, 20%, from the March deficit of -$1.971 billion whose figure was revised up from -$2.163 billion. Moreover, data showed that exports have risen by 1% and imports have declined by 1%. This is good news that backs up the strong GDP data released yesterday, but yet is a trend that needs to pick up pace if it is to counteract the loss of the mining industry all together.
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