Retail sales unexpectedly rose in November, revealing a surprising resilience among Aussie consumers in the face of mounting worries about a slowing economy and job losses.
Nationally, monthly retail sales gained a seasonally adjusted 0.4% in November from a revised 1% gain in October, Australian Bureau of Statistics figures show, suggesting consumers shrugged off the threat of rising unemployment to keep spending. Analysts had expected retail sales to shrink by 0.4% in November.
''It's a very positive surprise," said ANZ economist Katie Dean. "It means the consumer sector held up pretty well in the December quarter.''
The stronger-than-expected spending result may lower the chances of another rate cut when the Reserve Bank meets in February to decide. The central banks slashed the cash rate from 7.25% to 4.25% in the final months of last year in a bid to kick-start the economy and avoid a recession.
Traders were tipping about 75 basis points in additional cuts when the Reserve Board meets next month, Credit Suisse said, prior to the release of the retail trade figures.