Retail sales strong down under.
Australia’s retail sales rise at twice the pace economists had expected increasing 0.9 per cent from April.
Coles Myer and David Jones, the countries’ two largest department store chains, began winter discount sales at the end of May rather than June to attract customers.
“We had a better month in May than April, with sales across the board up about 4 percent,” said Keith Perkin, chief executive of the home appliance retailer Retravision, which has 500 stores across Australia.
Sales at department stores increased 9.1 percent in May and spending on clothing and footwear gained 4.5 percent.
The government’s 21.7 billion Australian dollars income tax cuts, which began Friday, coupled with a jobless rate at a 28-year low and rising wages is expected to fuel spending.
“Today’s tax cuts come exactly when we need them, because there is some softness in spending and the economy,” said Steve Patrick, a general manager at the retailer Supre. “We don’t need any interest-rate adjustment at the moment.”
