The release of the Apple iPhone 6 sent Australian retail sales soaring in September, with the Australian Bureau of Statistics reporting a stronger than expected 1.2% rise in the month, seasonally adjusted.
That followed a rise of just 0.1% in August and a rise of 0.4% in July.
The surge in September helped boost retail sales by 1% in the September quarter after they contracted in the June quarter.
That is a much stronger result than many forecasts and could mean that household spending makes a bigger contribution to third quarter growth than previously thought.
On a trend basis, which is designed to filter out the volatility from events such as the iPhone launch, retail sales again grew by 0.3% in September, the same as in August and July.
The latest ABS Retail Trade figures show that Australian retail turnover rose 1.2% in September 2014, seasonally adjusted, following a rise of 0.1% in August 2014.
iPhone 6 helps jump in retail sales
The ABS said in their report, "In seasonally adjusted terms the largest contributor to the rise was household goods retailing (4.1 per cent) where electrical and electronic goods retailing recorded growth (9.2 per cent). This figure was influenced by the release of the iPhone 6 during the month. The increase in electrical and electronic goods retailing represents about half of the total Australian sales movement of 1.2 per cent in seasonally adjusted terms.”
That 1.2% rise was equal to $287 million in extra sales, so the iPhone influence was valued at $140 million or so in September.
The ABS report supports reports from some leading retailers of a pick up in growth in September into October from groups such as JB Hi Fi, Dick Smith, Coles, but not Woolworths.
"Other industries which experienced rises were, cafes, restaurants and takeaway food services (2.0 per cent), food retailing (0.4 per cent), department stores (1.3 per cent) and clothing, footwear and personal accessory retailing (0.4 per cent). This was partially offset by a fall in other retailing (-0.2 per cent),” the ABS said.
In seasonally adjusted terms the states which displayed rises were New South Wales (1.7%), Victoria (1.3%), Western Australia (1.3%), Queensland (0.4%), South Australia (1.2%), the Australian Capital Territory (1.9%) and Tasmania (0.8%). This was partially offset by a fall in the Northern Territory (-0.6%).
Through the year, Australian retail turnover rose 5.7% in September 2014, seasonally adjusted, compared to September 2013, up from 5% in August (compared with August 2013).
Online retail turnover contributed 2.8% to total retail turnover in original terms, or close to $650 million.
The AMP’s chief economist Dr Shane Oliver said the annual growth in retail sales growth at 5.7% (see chart) indicates that the improvement in retail sales growth seen since late last year is being sustained with the help of low interest rates and rising wealth levels offsetting poor jobs growth and consumer sentiment.
“The likely strong contribution to GDP growth from trade and retail sales points to solid September quarter GDP growth,” Dr Oliver said.
