Retail Sales

Retail sales dropped by 1 per cent in July to $19.6 billion from $19.8 billion in June, when they fell a revised 0.8 per cent, seasonally adjusted. Analysts had expected sales would increase 0.5 per cent in July. The RBA will be keeping a close eye on statistics which indicate the resilience of the economy in the absence of government cash handouts. With numbers like this the RBA may have to wait longer, for more conclusive evidence, before raising rates.

Contrary to these numbers however a Westpac survey showed consumer confidence surging to a 2-year high.

The RBA will also have to throw into the mix statistics showing home lending easing after nine months of growth