- Glenn Stevens, RBA Governor
Australian retail sales continued to rise at a weak pace in September, while sales volumes declined in the third quarter, suggesting consumers remain wary amid Australia's economic transition. Retailers reported a 0.4% growth in sales in the measured month, in line with economists' expectations. However, on an annualised basis sales growth declined marginally to 3.6%, the Australian Bureau of Statistics said. Sales volumes climbed 0.6% in the September quarter, coming in weaker than the forecast of 0.7%, and falling from 0.8% in the June quarter. The RBA has tried to underpin demand by cutting interest rates twice already this year, and signalled that the central bank had more ammunition.
Meanwhile, Australia's trade deficit shrank in September as resource exports increased at a solid pace, indicating that the weaker Australian Dollar is having a positive impact on the nation's trade sector. Australia's merchandise trade shortfall contracted some 15% from a revised $2.71 billion in August to $2.32 billion in September. Exports increased a seasonally-adjusted 3% in September, led by a 4% rise in non-rural goods such as metal ores and minerals, while imports were 2% higher in September than August.
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