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Retail sales in Australia climbed for the fifth straight month in July and at a faster pace than expected, official data showed on Tuesday. A separate report showed that the country's current account deficit fell sharply.
The Australian Bureau of Statistics said retail sales increased 0.7% compared to June to A$20.4 billion, compared to a revised 0.4% increase in the previous month. Economists had forecast another 0.4% rise.
Sales at cafes, restaurants & takeaway food services increased 5.3% in July, while food retailing rose 0.4%. On the other hand, household goods retailing fell 1.7%.
Victoria recorded the biggest increase in retail sales, up 1.7%. Sales in Queensland rose 1.5%, while those in Western Australia slid 1.8%.
Separately, the statistical office said the number of housing permits granted in Australia rose for the first time in four months. Total dwelling permits rose by a seasonally adjusted 2.3% month-over-month in July to 13,732. Analysts had forecast a 0.7% fall after the 3.4% decrease in June.
The number of private houses approved edged down 0.1% to 8,624. At the same time, the number of private sector other dwelling units approved were up 7.7% to 4,216.
On a year-over-year basis, dwelling approvals were up 11%. Approvals for private sector other dwellings increased 38%, offsetting the 0.8% drop in approvals for private sector houses.
Meanwhile, Australia's current account balance, the broadest measure of trade balance, showed a deficit of A$5.6 billion at the end of the June quarter, down from a A$16.5 billion deficit in the March quarter.
The ABS said this was mainly due to a A$9.7 billion turnaround in balance of goods and services, which recorded a surplus of A$6.5 billion. At the same time, the income deficit fell A$1.1 billion to A$11.9 billion.
Australia's net international investment position rose A$4.2 billion to a net liability position of A$763.5 billion in the June quarter. The country's net foreign debt increased A$14.1 billion to a liability position of A$671.9 billion.
Elsewhere, the Reserve Bank of Australia said total credit provided to Australia's private sector by financial intermediaries rose by a seasonally adjusted 0.1% in July compared to June. This comes after a 0.2% increase in June. Economists had forecast a 0.3% rise. On a yearly basis, private sector credit rose 2.8%.
Housing credit increased by 0.5% month-on-month in July following a 0.4% rise in June. Year-over-year, housing credit was up 8.1%. Lending to both owner-occupiers and investors increased during the month.
At the same time, other personal credit was flat, following a 0.3% decrease over the previous month. On a yearly basis, other personal credit was up 3.2%.
Business credit fell by 0.4%, following a 0.1% decline in June. On a yearly basis, business credit slipped 5%.
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