The retail sales for August were solid in the minds of some analysts before the RBA decision and "weak" according to others after the 2.30 pm announcement.
But retail sales were up in August for a sixth straight month as consumers again lift their spending at restaurants and cafes, department stores and some smaller general outlets.
Seasonally adjusted retail sales rose 0.3% in August, after an unrevised 0.7% jump in July and a 0.4% rise in June, according to the monthly report from the Australian Bureau of Statistics .
The report once again reminds us that the retail sector is doing well, much better than many of the complaints reported by the media and statements from some analysts and retailing CEOs.
The figures show that spending at restaurants jumped 1.5% in the month and 0.6% at department stores. But consumers spent 1.5% less on clothing and shoes.
The 0.3% rise was just under the market estimate of 0.4%, but it confirms that despite some of the doom and gloom commentary in recent days on how tough it is in retailing, the sector isn’t a basket case.
In fact it looks fairly normal, with some parts doing better than others, which is always the case.
Besides the strong figures for Cafes, restaurants and food services (which recorded the largest increase in August after a strong result in July), Other retailing was up 1.4%, Household goods retailing (up 0.5%) and Department stores (up 0.6%).
"The seasonally adjusted estimate rose for Cafes, restaurants and catering services (2.8%) and fell for Takeaway food services (-0.1%)," the ABS said yesterday.
The Cafes restaurants and food services sector was the best performer in the year to August, with sales up a seasonally adjusted 12.5%, and more than 14% in unadjusted original terms, which is what the owners need to pay their bills, wages and make their profits from.
The ABS said in Other retailing, "the seasonally adjusted estimate rose for Other retailing, Pharmaceutical, cosmetic and toiletry goods retailing (1.3%) and Newspaper and book retailing (2.6%). The seasonally adjusted estimate fell for Other recreational goods retailing (-1.0%).
In Household goods, "the seasonally adjusted estimate rose for Electrical and electronic goods retailing (1.0%) and Furniture, floor coverings, houseware and textile goods retailing (0.9%) and fell for Hardware, building and garden supplies retailing (-0.6%)."
The ABS said that besides the weaker spending on Clothing, footwear and personal accessory retailing Food retailing (-0.3%) recorded a fall in sales.
In food retailing, the ABS said "the seasonally adjusted estimate fell for Supermarket and grocery stores (-0.4%) and Other specialised food retailing (-1.3%) and rose for Liquor retailing (1.2%)."
New South Wales saw a rise of 0.7%, Western Australia (up 1.1%) and Australian Capital Territory (up 0.7%). Smaller rises were recorded in South Australia (0.1%) and Tasmania (0.2%).
The ABS said sales in Victoria (-0.2%), Queensland (-0.1%) and Northern Territory (-0.5%) all fell.
The ABS said trend turnover increased 0.5% in July 2010.
This follows a 0.5% increase in both July 2010 and June 2010, which economists point out, is a sign of the underlying strength in the sector.
In the twelve months to August 2010 trend turnover increased 3.9%.
