Retailers say ABS July retail trade increase “not enough”
The Australian Retailers Association said the ABS July Retail Trade figures released yesterday showing a 0.7 percent growth in July retail trade was “not good enough”.
Economy
The Australian Retailers Association said the ABS July Retail Trade figures released yesterday showing a 0.7 percent growth in July retail trade was “not good enough”.
Retail trade continued to improve in July, with ABS Retail Trade figures up 0.7 percent in July, seasonally adjusted in addition to Australia’s Current Account Deficit shrinking on the back of an increase in exports.
Home prices across Australia remain stagnant, increasing by 0.4 percent in July after falling by 1 percent in June, compounding the lowest new home sales volumes seen in 18 months.
Centro Retail Trust’s performance this year has dragged down the performance of the broader Centro Property Group with the retail sector performance stagnating in both Australia and the United States over the last year.
New home sales in Australia dived 7 percent to an 18 month low in July according to the latest Housing Industry Association report into new home sales, triggering calls for federal government action to save the sector.
Housing affordability in Australia is close to record lows according to the HIA-CBA Housing Affordability Report for the June quarter 2010.
Labor’s fiscal stimulus policy at the height of the global financial crisis will net the Federal Government an additional $16 billion in tax receipts from those who would have otherwise been unemployed.
Wages only increased by 0.8 percent in the June quarter according to the latest data from the ABS, reducing pressure on the Reserve Bank of Australia to increase rates at its September board meeting.
Tony Abbott’s announcement of coalition policy to raise $20 billion in funding for infrastructure projects through a public bond issue has the support of the Housing Industry Association.
Virgin Blue will abandon the New Zealand domestic market from October 18, after it’s New Zealand based Pacific Blue operation accrued years of losses.
National Australia Bank’s (NAB) SME Quarterly Survey (June 2010) found that business conditions, profit growth and the cash flow position of Australia’s small to medium-sized enterprises deteriorated for the second consecutive quarter in June.
Australia’s unemployment rate increased by 0.2 percentage points to 5.3 percent in July, seasonally adjusted, with a fall in the number of full time employed.
The Westpac – Melbourne Institute Index of Consumer Sentiment has bounced back 17 percent over the last two months as consumers burned by six RBA interest rate increases in nine months recover.
The Commonwealth Bank of Australia’s (CBA) cash net profit after tax has increased by 42 percent to $6,101 million for the financial year ended 30 June 2010.
National Australia Bank’s plans to acquire AXA Asia Pacific Holdings Ltd and AXA SA continue to move closer to fruition, with the ACCC seeking ‘market consultation’ over the proposal.
Bendigo and Adelaide Bank has announced a 190 percent improvement in net profit for the 12 months ending 30th of June 2010, with after tax profit of 242.6 million.
New vehicle sales were up 9.3 percent in July on the back of a 29 percent increase in sales of SUVs and strong private buyer demand according to the latest VFACTS data.
Australia’s services sector continues to contract as the Federal Government’s fiscal stimulus dries up and the Reserve Bank’s interest rate increases impact the services sector.
Retail trade in Australia has improved, but only by 0.2 percent in June, repeating the 0.2 percent growth in retail sales recorded by the ABS in May this year.
The Reserve Bank of Australia has held interest rates at unchanged at 4.5 percent for the third month running, with the RBA signaling its plans to hold rates unchanged until 2011.