Australia: Payback in retail sales likely in April – RBC CM

Analysts at RBC Capital Markets point out that Australian retail sales have been particularly weak of late, with the monthly average barely 0.1% over the last six months.

Key Quotes

“Some payback for two consecutive negative monthly prints is likely in April, but we have long highlighted the challenges for the consumer—weak wages growth, high levels of debt, still elevated unemployment—which remain intact. We look for a corrective bounce of 0.3% in April although this is unlikely to challenge the tepid trend.”