By Oliver Gray
Investing.com - Australian retail sales beat forecasts again in February as shoppers returned to cafes and department stores to post the second-best month ever of spending.
Tuesday‘s data from the Australian Bureau of Statistics showed retail sales climbing 1.8% for the February period to A$33.1 billion, coming in above analyst forecasts of 1%.
On an annualized basis, sales gained 9.1% followed a surprisingly upbeat 1.6% gain in January, suggesting household spending overall was set for a strong first quarter.
Commonwealth Bank said it is upbeat on the outlook for consumer spending this year as spending patterns returned to normal. “Further ahead, rising cost of living pressures, the growing realisation of rising mortgage payments and some moderation in the housing market could weigh on consumer spending,” said Belinda Allen, senior economist at CBA.
“Offsetting this will be a very tight labour market, rising wages growth, a significant pool of household savings as well as cash handouts expected in the federal budget announced tonight.”