2019.10.0323:08:00UTC+00Australia Retail Sales Expand In August

Australia's retail sales increased in August, data from the Australian Bureau of Statistics showed on Friday.

Retail sales advanced 0.4 percent on month, following a flat growth a month ago. This was the fastest growth in four months. However, the pace of growth was slightly slower than the expected 0.5 percent.

Food retailing climbed 0.4 percent and clothing and footwear sales advanced 1.8 percent. Department store sales and household retailing grew 1.1 percent and 0.3 percent, respectively. These rises were partly offset by a fall in cafes, restaurants and takeaway services.

Ben Udy, an economist at Capital Economics, said retail sales growth remained subdued in August despite the government's tax cuts which suggests that economic activity did not recover strongly in the second half of 2019.

Consumption growth is now unlikely to pick-up in the third quarter. Moreover, the economist expects international headwinds and falling confidence domestically to weigh on economic activity into next year.