- Gareth Aird, CBA
Australian retail sales increased more than expected over the course of May, a fresh release showed on Monday. The Australian Bureau of Statistics reported that the country's retail sales surged at a seasonally adjusted pace of 0.6% in May, following the preceding month's gain of 1.0%, which was the strongest in nearly two years. The survey showed the reading topped market forecasts for a modest 0.3% increase, suggesting that consumer spending was recovering after a sluggish start this year. Moreover, yearly growth in Australian retail sales advanced to 3.2%, with gains posted by household goods, food retailing, department stores and catering. However, some experts suggested that May's data were partially supported by the weather-related, temporary factors. Separately, other economic indicators pointed to a likely consumer spending rebound amid strong data on tourism, the labour market and new car sales. To assist further economic expansion, the Reserve Bank of Australia decided to keep its key interest rates at a record low of 1.50% and monetary policy unchanged as anticipated.
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