Santa goes missing for retail

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Retail sales for December are out and those that think interest rates are firing up a new binge have some answering to do. Monthly sales were down -0.2% versus expected 0.3% rise. November was also revised down to 0-.2:

Year on year growth was a lousy 2.3% and sliding.

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The falls were across categories and non-mining states, from the ABS:

  • The seasonally adjusted estimate fell 0.2% in December 2012. This follows a fall of 0.2% in November 2012 and a fall of 0.1% in October 2012.
  • In trend terms, Australian turnover rose 2.5% in December 2012 compared with December 2011.
  • The following industries fell in trend terms in December 2012: Other retailing (-0.5%), Household goods retailing (-0.4%), Cafes, restaurants and takeaway food services (-0.3%) and Clothing, footwear and personal accessory retailing (-0.2%). Food retailing (0.3%) and Department stores (0.1%) rose in trend terms in December 2012.
  • The following states and territories fell in trend terms in December 2012: New South Wales (-0.2%), Victoria (-0.2%), South Australia (-0.4%), the Australian Capital Territory (-0.3%) and Tasmania (-0.2%). Western Australia (0.4%) and Queensland (0.1%) rose in trend terms in December 2012. The Northern Territory was relatively unchanged (0.0%).

Unconventional Economist will return with the quarterly details.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.