Australia: Cashless Retail Sales Index down 0.6% in April - NAB

Australia’s NAB Cashless Retail Sales Index was weaker in April, down 0.6% on a month on month basis in March and it is the weakest result since December 2017 and arguably more concerning given December was affected by a strong November print, notes the research team at NAB.

Key Quotes

“Generally most sectors were weak in April, with only cafes, restaurants and takeaway and department stores recording a month on month gain. Food recorded the weakest result, followed by clothing and footwear. Our data mapping yields a forecast of -0.2% m/m for the official ABS measure of retail sales in April. Our March estimate was revised up from 0.2% to 0.4% (compared to the flat ABS print).”

“The data remains more encouraging on a year on year basis, with the NAB Cashless Retail Sales Index up 9.3% in April, although this was distorted by special factors (iPhone X and Black Friday) in late 2017.”

“Year on year growth was positive for all six NAB Cashless Retail Index major industry groupings, although the growth rate slowed across all but one.”

“Looking across Australia, year on year growth remains positive, but was slower in every state.”