Australians spent more money on making themselves and their homes more presentable according to the latest retail sales figures for November. Increased spending on household goods (furniture, floor coverings, kitchen items and textiles) and “recreational goods, toiletries and cosmetics” accounted for almost all of the overall increase in total retail sales during the month.
In particular, smartphone sales were said to be a major factor. An Australian Bureau of Statistics representative pointed to iPhones 10 sales “and the increasing popularity of promotions in November, including Black Friday sales” as an explanation for the surge.
Total retail sales (seasonally adjusted) increased by 1.2% in November, after rising by 0.5% in October. On a year-on-year basis, sales grew by 2.9%, up from the 1.8% annual rate recorded in October. These latest figures mark the second month in a row in which the annual growth rate has accelerated.
The month-on-month increase was much more than the 0.4% increase which was expected and the Aussie dollar and bond yields jumped before easing off over the course of the day. 3 year bonds ended the day up 3bps at 2.18% and 10 year bonds finished 2bps higher at 2.74%. The local currency jumped from just above 78.40 U.S cents to as high as 78.80 U.S. cents before easing back to around 78.75 U.S cents.