The Australian Bureau of Statistics on Friday reported its preliminary estimate of retail sales have jumped 16.3% on a seasonally adjusted basis in May, from April when it tumbled 17.7%. Sales were also up 5.3% on May last year at A$28.83 billion ($19.77 billion).
The May figures beat economists’ expectations and exceeded even pre-COVID levels from both February and a year ago.
“Today’s data is a piece of really positive news for consumers and businesses alike,” said CommSec chief economist Craig James.
“It says that the economy is getting back to normal. The data will especially be heartening for smaller retailers.”
Description of the Retail Sales
The Retail Sales released by the Australian Bureau of Statistics is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes and it”s considered as an indicator of the pace of the Australian economy. It shows the performance of the retail sector over the short and mid-term. Positive economic growth predicts bullish trends for the AUD, while a low reading may be seen as negative or bearish.