FX.co ★ Australia Retail Sales Rise Less than Estimated

In May 2025, retail sales in Australia experienced a modest increase of 0.2% compared to the previous month, rebounding from a stagnant performance in April, although falling short of market predictions which anticipated a 0.4% rise. The growth was primarily attributed to a recovery in the clothing, footwear, and personal accessory sector, which surged by 2.9% after a 2.8% decline in April, as well as in department stores, which saw a 2.6% increase after facing a 2.9% downturn. In contrast, sales of household goods remained static following a 0.8% rise the prior month. The cafe, restaurant, and takeaway food services sector also showed no change, maintaining the upward trend seen in April's 1.2% increase. However, declines were observed in food retailing, which fell by 0.4% following a lesser 0.2% drop, and in other retailing sectors, which decreased by 0.2% in contrast to a previous increase of 0.7%. Regionally, there were sales increases in Western Australia (up by 0.7%), the Australian Capital Territory (up by 0.4%), and Victoria (up by 0.2%). Sales edged up by 0.1% in New South Wales, Queensland, and South Australia. Conversely, sales were flat in the Northern Territory and saw a minor decrease of 0.1% in Tasmania. Annually, the growth in retail sales slowed to 3.3% from April's 3.8%, marking the weakest annual growth rate in six months.