May retail sales jump more than tipped

Retail sales rose more than expected in May as government assistance for students and the carbon tax began flowing into households.

Sales for the month rose 0.5 per cent from April, beating the 0.2 per cent increase expected by economists.

Retail trade rose in the month to a seasonally adjusted $21.307 billion, compared with a revised $21.199 billion in April, the Australian Bureau of Statistics said.

The ABS revised the April figure to show a 0.1 per cent increase - making it five consecutive monthly increases and the longest string of rises for the gauge since September 2010.

The Reserve Bank slashed interest rates by half a percentage in May, a move it followed up with a further quarter-point cut in June. Both cuts would have helped those repaying variable interest-rate loans. The central bank opted to leave its key cash rate unchanged at 3.50 per cent yesterday.

Commonwealth Bank economist James McIntyre said the carbon tax household assistance package was delivered in mid-May and would run though to mid-July.

“On our estimates we thought the sum of that would be spent in the retail sector and it looks like that happened in May,” he said. The assistance will likely deliver strong retail sales readings in June and July.

“But then we should potentially see some weaker number as we stop cycling that mini-stimulus in August,” he said.

Households may also have been cheered by the government's pledge to lift its assistance for school-age students.

The strength of retail sales made an August rate cut less likely, he said, which helped boost the dollar to $US1.0315 from $1.029 before the data was released.

Among the states, retail sales increased 0.7 per cent in seasonally adjusted terms in New South Wales, its third consecutive monthly rise. In Victoria retail sales rose 0.5 per cent in May, matching the increase in Queensland, the ABS said. In Western Australia retail sales jumped 1.1 per cent for the month.

http://www.smh.com.au/business/may-retail-sales-jump-more-than-tipped-20120704-21gg6.html

Hard Righters -> Greens and Labor, fantastic managers of the economy aye !

it was probably because they believed abbott when he told them everything would go up by 1000% because of the carbon tax ... they figured they'd get what they needed before then .....

Yay free money from the Government.

Who's paying?

Shane B wrote on Jul 4^th, 2012 at 12:18pm:

Yay free money from the Government. Who's paying?

The big polluters. Where have you been hiding ... under a rock?

Just the 'polluters' hey???

So if its just the 'polluters' who pay, why does the Government's Treasury modelling forecast that households will pay $9.90 in higher costs each week?

Shane B wrote on Jul 4^th, 2012 at 12:28pm:

Just the 'polluters' hey??? So if its just the 'polluters' who pay, why does the Government's Treasury modelling forecast that households will pay $9.90 in higher costs each week?

Want to link those figures because these are the ones I've seen


Quote:

It averages about $3.30 a household per week averaged across households in Australia and the Government is using the revenue from the carbon price to pay to households an average of $10.10 a week in assistance.

And even if your figures are correct we are still 20 cents better off are we not?

Not at all, not all households are being overcompensated.

I hope they kept some for the next electricity bill and other costs. Just because it was given in advance, doesn't mean you should spend it in advance.

Ex Dame Pansi wrote on Jul 4^th, 2012 at 12:41pm:

I hope they kept some for the next electricity bill and other costs. Just because it was given in advance, doesn't mean you should spend it in advance.

The people know how to spend money responsibly. Gillard says so.

The uptick in retail spending is surely not linked to government handouts, because that money was meant for added costs to current goods and services you use. Does that mean this is all infationary or one off spending blitz by the responsible public. Back to being poorer than you thought you were poor for the next 6 or 12mths, then spending blitz next time labor bye your vote.

Shane B wrote on Jul 4^th, 2012 at 12:38pm:

Not at all, not all households are being overcompensated.

Are you saying a household that brings in $2884.61p/week(150K) before tax could not afford $9.90 p/week.
Their margins are that tight?
You also realise that whilst maybe not getting the $9.90 p/week, they still benefit from the TFT increase.

Seriously I just don't understand, Conservatives consistently moan about money spent on single mothers & the jobless, want to pay less tax whether it be income or business, yet in the next breath demand that those on incomes in the top 15% get handouts.

Cant you guys see how buggered up your argument really is?

____ wrote on Jul 4^th, 2012 at 12:13pm:

May retail sales jump more than tipped Retail sales rose more than expected in May as government assistance for students and the carbon tax began flowing into households. Sales for the month rose 0.5 per cent from April, beating the 0.2 per cent increase expected by economists. Retail trade rose in the month to a seasonally adjusted $21.307 billion, compared with a revised $21.199 billion in April, the Australian Bureau of Statistics said. The ABS revised the April figure to show a 0.1 per cent increase - making it five consecutive monthly increases and the longest string of rises for the gauge since September 2010. The Reserve Bank slashed interest rates by half a percentage in May, a move it followed up with a further quarter-point cut in June. Both cuts would have helped those repaying variable interest-rate loans. The central bank opted to leave its key cash rate unchanged at 3.50 per cent yesterday. Commonwealth Bank economist James McIntyre said the carbon tax household assistance package was delivered in mid-May and would run though to mid-July. “On our estimates we thought the sum of that would be spent in the retail sector and it looks like that happened in May,” he said. The assistance will likely deliver strong retail sales readings in June and July. “But then we should potentially see some weaker number as we stop cycling that mini-stimulus in August,” he said. Households may also have been cheered by the government's pledge to lift its assistance for school-age students. The strength of retail sales made an August rate cut less likely, he said, which helped boost the dollar to $US1.0315 from $1.029 before the data was released. Among the states, retail sales increased 0.7 per cent in seasonally adjusted terms in New South Wales, its third consecutive monthly rise. In Victoria retail sales rose 0.5 per cent in May, matching the increase in Queensland, the ABS said. In Western Australia retail sales jumped 1.1 per cent for the month. http://www.smh.com.au/business/may-retail-sales-jump-more-than-tipped-20120704-21gg6.html Hard Righters -> Greens and Labor, fantastic managers of the economy aye !

http://i17.photobucket.com/albums/b76/timbo2530/TAX.jpg
http://i17.photobucket.com/albums/b76/timbo2530/BewareGOVT.jpg

Dsmithy70 wrote on Jul 4^th, 2012 at 12:35pm:

Shane B wrote on Jul 4th, 2012 at 12:28pm: Just the 'polluters' hey??? So if its just the 'polluters' who pay, why does the Government's Treasury modelling forecast that households will pay $9.90 in higher costs each week? Want to link those figures because these are the ones I've seen Quote: It averages about $3.30 a household per week averaged across households in Australia and the Government is using the revenue from the carbon price to pay to households an average of $10.10 a week in assistance. And even if your figures are correct we are still 20 cents better off are we not?

no one believes the $3.30 figure. no one. with power alone going up by three times that amount the figure is garbage. and the 'compensation' is for most people less than the costs.

Dsmithy70 wrote on Jul 4^th, 2012 at 12:57pm:

Shane B wrote on Jul 4th, 2012 at 12:38pm: Not at all, not all households are being overcompensated. Are you saying a household that brings in $2884.61p/week(150K) before tax could not afford $9.90 p/week. Their margins are that tight? You also realise that whilst maybe not getting the $9.90 p/week, they still benefit from the TFT increase. Seriously I just don't understand, Conservatives consistently moan about money spent on single mothers & the jobless, want to pay less tax whether it be income or business, yet in the next breath demand that those on incomes in the top 15% get handouts. Cant you guys see how buggered up your argument really is?

thats hardly a fair representation of the argument. you rely on stereotypes and extremes. Maybe what people are complaining abotu is the principle of contributing more already then being asked to pay even more all the while being hated by the govt in the same process.  why should a govt payment depend on the need of the recipient? why shoudl hard work and responsible management of money be punished while sloth and waste be supported? there is a principle here. The trouble is (as you know) as soon as you talk about 'principle' you lose all but about 3 people who really dont understand that they are and simply revert to circumstances.

You lose, your corruption has run its natural course and the law and the public conscience is catching up to you prison is waiting fr the guilty...productivity 'eh...:D