"Respondents to the Australian PMI suggested that the winding down of Australian automotive assembly and the ongoing downturn in mining construction activity are dampening demand for locally-made products and components."
- Ai Group
Retail sector in Australia posted a slower-than-forecasted advance in August, raising concerns about country's ability to reach sustainable economic growth in the foreseeable future, as in times of decline in mining industry consumer spending is expected to be the main driver of recovery in Australia. Sales added only marginal 0.1% on a monthly basis, while economists waited for a 0.4% growth, the same as in July. The biggest decline in deliveries was registered in department stores, where they dropped 2.9% during the reported period of time, while sales of household goods dipped as much as 0.8%, posting a second consecutive slump in a row. At the same time, sales of other products showed a monthly increase of 1.6%. They include pharmaceuticals, books and cosmetics. On a regional basis, the weakest performance was showed by Queensland, New South Wales and the capital city of Canberra, where the indicator plunged 0.6%, 0.1% and 0.4%, accordingly. Alongside, sales Northern Territories, Victoria and Western Australia added 1.7%, 0.7% and 0.1%, respectively.
In addition, manufacturing industry in the country continued to plummet in September, as the benchmark PMI Index for this sector in Australia reached 46.5 points, pointing on downward trend. Among sub-industries, only production of wood products and beverages posted a climb in activity last month.
© Dukascopy Bank SA