Mixed messages from May’s retail sales and building approvals.
Building approvals fell 6.6% in May compared with a flat result expected, while retail sales grew 0.2%, against a market estimate of a rise of 0.3%.
Retail sales fell, but the fall in building approvals was unexpected and due to the volatile "other swelling" category where there was another fall for the month.
Private home approvals edged up in the month.
But the two sets of figures confirm that the domestic economy isn’t going gangbusters.
The 0.2% rise in retail sales in May, ($20.16 billion, seasonally adjusted), compared with a rise of 0.6% in April.
The ABS said Clothing, Footwear & Other Personal Accessory Retailing rose 1.7%, and Department Stores (up 1.0%) recorded the largest increases in May followed by Cafes, Restaurants & Takeaway Food Services (0.8%), Other Retailing (0.3%) and Food Retailing (0.2%).
Sales fell in Household Goods Retailing (-1.4%).
Sales rose in NSW (up 0.9%) and Victoria (0.2%).
But sales fell in the other states and territories: South Australia (down 0.9%), the Australian Capital Territory (-0.6%), the Northern Territory (-0.4%), Western Australia (-0.3%), Queensland (-0.2%), Tasmania (-0.1%).
In original terms, turnover increased 0.6% in the twelve months to May 2010.
While building approvals slumped in May, the fall was less than the revised 11.4% drop in April.
There was a 1.7% rise in private house approvals to 8,835 in May, but other dwellings – such as units – slumped 18.8% in the month to 3623.
Other dwellings is a very volatile category and depends heavily on local government approvals, it has swung wildly from month to month since the GFC hit as banks have cut lending to investor and commercial property developers.
Overall dwelling approvals totalled 13,412 for the month.
According to the ABS, New South Wales (-9.8%), Victoria (-3.0%), Queensland (-8.6%), Western Australia (-13.9%) and Tasmania (-24.8%) recorded fewer dwelling approvals this month, while South Australia saw a 30.6% jump.
The rise in private housing approvals came from a large increase, 14.5% surge in Victoria.
Approvals fell in NSW (down 1.2%), Queensland (-8.2%), South Australia (-0.3%) and Western Australia (-3.6%).
The value of total building approved rose 2.7% in May in seasonally adjusted terms. The value of total residential rose by 0.1% and non-residential rose by 9.1%.
