Retail Sales

The lack of government handouts and perhaps the thought of future interest rate tightenings are have had a dampening effect on retail spending. Figures released yesterday showed retail spending dropped by 0.2% in September after a 0.7% rise in August. Quarterly figures paint a more accurate picture showing a fall of 0.4% in real terms over the September quarter following a sharp 2% increase during government handout period of the June quarter.

Building approvals however rose by 2.7% in September. Private sector house approvals rose for the ninth consecutive month while total approvals have now risen by 26.7% since the start of 2009.