Australia: Q1 retail sales to show a further rise but at a slower pace - Westpac

Analysts at Westpac offer a brief preview of Tuesday’s Australian retail sales release due at 0130 GMT, with a slowdown in retail spending expected in the Q1 update.

Key Quotes:

Consumer sentiment softened after a sharemarket sell-off and increased concerns about the outlook for the economy and jobs

Retail responses to private sector business surveys also point to a softening in sales although these have provided conflicting guidance in recent months.

On balance we expect March to show renewed headwinds with a sub-par 0.2% gain.

After stalling in Q3, retail volumes rebounded 0.9% in Q4, rounding off a stop-start year for retail.

The Q1 update should show a further rise but at a slower pace.

Points to a 0.8% rise in real retail sales.