Retail trade rose by a robust 0.8% in September, well above market expectations which centred on a rise of 0.4% {CBA (f)+0.3%}. It was the largest monthly rise since February’s 1.2% result. Annual growth is now 2.9%, but remains well belowthe 6%pa averages of the decade prior to the GFC period. Undoubtedly the clear win by the Abbott Government at theearly September election will be seen as positive for consumer confidence and retail spending. Additionally, firmer houseprices and the rising stock market lift householders’ wealth positions. Household spending may have been constrained bythe unusually long Federal election campaign.
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Commonwealth Bank