- Shane Oliver, head of investment strategy at AMP Capital
Australia's retail sales data exceeded expectations in June with the biggest increase in four months, while household spending for the second quarter likely boosted economic growth. Sales at Australian retailers surged a seasonally adjusted 0.7% on month in June, and 0.8% in volume terms, the Australian Bureau of Statistics reported. The June's indicator came in better than the revised 0.4% growth in May and economists' expectations for a 0.5% rise. From the previous year total sales soared 4.94%, the biggest annual percentage rise since October 2014. Household goods retailing climbed 0.8% over the reported month, while food retailing edged higher by 0.2%, and dining out retailing ticked up 0.3%. Department store sales was the only retail category to decrease in June, sliding 0.2%.
A separate report showed Australia's trade deficit widened further in June. The nation's trade shortfall expanded to $2.93 billion in the reported month, compared with a revised $2.68 billion gap in May. Imports surged 4% in June to $29.28 billion, while exports grew a solid 3% to $26.35 billion. Despite near-record exports of key commodities including iron ore and coal, steep price declines over the past year have undermined Australia's trade position.
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