(RTTNews) - Retail sales in Australia were up a seasonally adjusted 0.4 percent in November compared to the previous month, the Australian Bureau of Statistics said on Wednesday, standing at A$18.423 billion from an upwardly revised A$18.398 billion in October.

That was sharply higher than the 0.4 percent monthly decline that analysts had forecast following the revised 1 percent jump in October.

“Retail sales showed some improvement late in 2008 as interest rate cuts by the RBA and sharply lower petrol prices provided consumers with extra spending money,” said the analysts at Westpac in a statement commenting on the data. “That said, the rate of improvement is not rapid. Prospect of rising unemployment has consumer confidence in the pessimistic zone and has triggered a general cut-back in discretionary spending.”

The Australian Bureau of Statistics also reported Wednesday that trend retail sales increased by 0.1 percent on month - in line with analyst expectations. The result follows a trend increase of 0.2 percent in each of the preceding three months. November trend 2008 retail sales increased 1.9 percent over those in November 2007.

The statistics bureau said the increase in the trend figure was led by food retailing, up 0.7 percent and other retailing, up 0.6 percent. Decreases in the trend came from department stores down 0.4 percent, clothing and soft goods retailing down 0.3 percent.

The data also showed that all states, except New South Wales (-0.2 percent) and Western Australia (-0.1 percent), had an increase in the trend estimate. Queensland, South Australia (both +0.1 percent) and Tasmania (+0.2 percent) had weak growth in the trend estimate.

The trend estimate for chains and other large retailers increased by 0.3 percent in November 2008 compared to October 2008 and 5.1 percent in November 2008 compared to November 2007.

The early forecasts for December also point to retail growth.

“In December, the sizeable income boost from the Federal Government’s A$8.4 billion in cash handouts will further support spending,” Westpac added.

On other news on Wednesday, sales of new houses in Australia declined a seasonally adjusted 1.1 percent in November, according to the Housing Industry Association. The Association said fears of recession and tighter credit overcame declining interest rates.

The survey also found sales of private detached houses declined 0.4 percent, while sales of multi-unit housing declined 5.3 percent. The November decline compares to an increase in overall new house sales of 4.5 percent registered in October.

HIC Chief Executive Chris Lamont sales activity in the second half of 2008 reflected the general economic slowdown and difficulties faced in finding financing for new construction.

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Posted in Categories: Australia, Economy, Forex, Releases.

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