Australia retail sales hit record: ABS

Bloomberg

Australian retail sales jumped for a third consecutive month to hit a record, driven by a spending revival on the nation’s
flood-ravaged east coast and highlighting the economy’s strong underlying momentum.
Sales surged 1.6% in March to A$33.6 billion ($23.9 billion), more than triple economists’ forecast for a 0.5% increase, Australian Bureau of Statistics (ABS) data showed. The ABS will release quarterly figures on May 10. The data highlight the resilience of Australian households — a pillar of the A$2.2 trillion economy — which are grappling with elevated inflation, rising interest rates and a cooling property market.
The Reserve Bank of Australia initiated its first tightening cycle in more than a decade with a larger-than-expected 25 basis point rate increase to 0.35%, and signalled further hikes ahead. “These data suggest that consumer demand remains resilient,” said Sean Langcake, head of macroeconomic forecasting for BIS Oxford Economics. “Given the relative strength of the labor market and the elevated savings rate, we expect consumption growth will be robust over 2022.”