Australia's March Retail Sales Solid, Trade Balance Deficit Shrinks

Australia's March Retail Sales Solid, Trade Balance Deficit Shrinks

Australia's March retail sales came at 0.4% m/m vs 0.3% expected and 0% last, while the trade balance printed -2,163M vs -2,900M expected and -3,410M last.

KEY POINTS

Retail sales - current prices

The trend estimate rose 0.2% in March 2016. This follows a rise of 0.2% in February 2016 and a rise of 0.2% in January 2016.

The seasonally adjusted estimate rose 0.4% in March 2016. This follows a rise of 0.1% in February 2016 and a rise of 0.4% in January 2016.

In trend terms, Australian turnover rose 3.6% in March 2016 compared with March 2015.

The following industries rose in trend terms in March 2016: Food retailing (0.1%), Clothing, footwear and personal accessory retailing (0.7%), Household goods retailing (0.2%), Other retailing (0.2%) and Department stores (0.1%). Cafes, restaurants and takeaway food services (0.0%) was relatively unchanged in trend terms in March 2016.

The following states and territories rose in trend terms in March 2016: New South Wales (0.2%), Victoria (0.2%), Queensland (0.1%), South Australia (0.3%), the Australian Capital Territory (0.8%) and Tasmania (0.2%). Western Australia (0.0%) was relatively unchanged. The Northern Territory (-0.1%) fell in trend terms in March 2016.

Retail sales - volume measures

In volume terms, the trend estimate for Australian turnover rose 0.5% in the March quarter 2016.

Trade Balance

BALANCE ON GOODS AND SERVICES: In trend terms, the balance on goods and services was a deficit of $2,836m in March 2016, a decrease of $250m (8%) on the deficit in February 2016. In seasonally adjusted terms, the balance on goods and services was a deficit of $2,163m in March 2016, a decrease of $881m (29%) on the deficit in February 2016.

CREDITS (EXPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services credits rose $1,084m (4%) to $26,529m. Non-monetary gold rose $659m (58%) and non-rural goods rose $356m (2%). Rural goods fell $85m (2%) and net exports of goods under merchanting fell $1m (3%). Services credits rose $155m (3%).

DEBITS (IMPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services debits rose $203m (1%) to $28,692m. Non-monetary gold rose $122m (33%), capital goods rose $94m (2%) and intermediate and other merchandise goods rose $50m (1%). Consumption goods fell $177m (2%). Services debits rose $114m (2%).