Consumer spending has been a disappointing area for the Australia economy, weighed upon by slow wage growth
Later this week we get November retail sales data:
- expected +0.4% m/m
- prior +0.5%
TD are confident of a positive result, but not as strong as market, expecting +0.2%:
- Consumers ended 2017 on a buoyant note, so we look for a small uptick in November, and a more substantial increase in December
While we will have to wait another month for the December data, Deutsche Bank research are pointing to a strong result:
- Retailer feedback was positive
- "Almost every retailer we spoke to" said sales growth was solid over December
- "The trend across retailers was fairly consistent with a weak first week of December, a better second week and a strong final week before Christmas. Boxing Day through NYE exceeded most retailers' expectations by a considerable margin."
- "This was not the terrible Christmas it was looking like it could have been back in November and while it is still very early days, Amazon's soft launch suggests it could take far longer than most thought to have an impact"
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November retail sales data is due Thursday 11 January 2018 at 0030 GMT
