Retail trade rose by a seasonally adjusted 0.3% in November, according to the latest figures from the Australian Bureau of Statistics, with the result in-line with economists’ expectations.
The result comes after the ABS revealed retail trade dropped by 0.8% in October and rose by 0.1% in September.
The “other retailing” category increased by 0.8%, with department stores also recording an increase of 0.8%. Cafes, restaurants and takeaway food also grew by 0.4%.
Commonwealth Bank chief economist Michael Blythe said the overall result was strong, although the economy is still moving at different speeds.
“To get any rise at all in retail sales in November, given we had sort of a double-whammy rate rise, is probably not a bad result. Other parts of the consumer story still look pretty strong, motor vehicle sales are holding right up there at very high levels, so it’s a very patchy story,” he told Reuters.
The data could give the RBA reason to hold off on another rate rise until later in the year.
Activity in the construction industry fell for a seventh consecutive month due to weakness in home building, although engineering has continued to grow, according to the latest Australian Industry Group-Housing Industry Association index.
The index rose by 1.6 points to 43.8, but the result is still under the 50-point level that separates expansion from contraction.
“Weakness continues across the construction sector but is particularly evident in the residential housing and apartment sub-sectors,” AIG director of public policy Peter Burn said in a statement
“Expectations of further interest rate rises are having a significant impact on the sector.”
The engineering measure gained 18.9 points to 58.3, representing the first growth in six months, but measures of apartment building and housing building remained below 50.
Shares lower after weak Wall Street data
Local shares have opened weaker this morning following data from Wall Street which showed that while payrolls had increased, the figure was not enough to raise economists’ hopes for 2011.
The Australian sharemarket fell by six points or 0.14% to 4698.4 at 12.20 AEST, while the Australian dollar opened flat at US99c.
AMP shares lost 0.4% to $5.21 as Commonwealth Bank shares gained 0.2% to $49.98. ANZ fell 0.3% to $22.85 as Westpac fell 0.5% to $22.03.
Virgin Blue has announced a partnership with Skywest Airlines in Singapore in order to gain access to 18 turbo prop aircraft and expand exposure to the mining sector.
Virgin Blue chief executive John Borghetti said the company was investing in a “substantial network in regional Australia”.
“The leasing arrangement means that Skywest will not be exposed to the capital investment of owning the aircraft and will be a service provider and code-share partner,” Skywest chairman Jeff Chatfield also said.
Gladstone port has said that it is so short of coal that ships could be diverted elsewhere if they are not loaded soon.
“We have got about 18 ships sitting out waiting,” spokeswoman Lee McIvor told Reuters yesterday. “We are expecting the coal companies to reallocate and reschedule these ships elsewhere.”
“We are getting shipments in but it’s for domestic customers, not for export,” the spokesperson said, adding that the situation could go on for weeks.
Diversified Mining Services has now purchased two Hunter Valley companies that will help it expand its position in the area.
“These businesses are the ideal complement to our Mackay-based Scaffold & Rigging and Protective Coatings operations and give us deeper penetration into the Hunter Valley,” DMS managing director Terry Young said in a statement.
“They are both well respected and firmly established business which will further enhance the scope of services we are able to provide to the market.”
Oil prices tipped to rise
Oil prices could increase to as much as $US110 in the next few weeks that could lead to higher production, a member of the Kuwait Supreme Petroleum Council has said.
“Demand will increase slightly, but this increase in price is usually technical, due to analysts’ forecasts and speculations,” Imad al-Atiqi told Reuters.
“This (increase) could be a reason to increase production so the oil market does not get worried… especially if the rise was quick and crossed the $US110,” he said.
But Altiqi has said that the global economy could afford such a price and this would not affect any economic recovery.
“It wouldn’t because this is coordinated with other strategic commodities like gold, metals, food and basic materials,” he said.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
