Retail sales slow with stalled wages

RETAIL sales fizzled out in July, falling short of market expectations.

The Australian Bureau of Statistics said yesterday that retail turnover was flat in July — the weakest monthly result since March.

That lagged expectations of 0.3 per cent growth and followed a 0.4 per cent rise in June.

Clothing and footwear led declines with a 2 per cent fall while sales at department stores eased 1.9 per cent and household goods retailing faltered 1.2 per cent.

The drops were offset by gains in food, cafes and restaurants — a category that’s remained resilient in the past year.

The downbeat figures weighed on the Australian dollar, which fell to US71.66c yesterday, its weakest level since early last year.

It comes as economists worry about the impact on household consumption from snail-paced wage growth and a slowdown in Australia’s oncebooming housing market.

ABS data on company earn- ings showed gross operating profits rose 2 per cent in the June quarter, the third straight quarter of solid gains, leaving profits up 11 per cent on last year.

There was better news on household incomes. Compan- ies paid out $137 billion in wages and salaries in the June quarter, up 1.2 per cent on the previous quarter.

The wage bill rose 4.5 per cent annually, more than double individual pay growth.

Australia’s GDP data is due tomorrow and a Reuters poll of 16 economists shows the $1.8 trillion economy likely expanded at 0.7 per cent last quarter, slower than the brisk pace of 1.0 per cent in the three-months to March. AAP

The downbeat figures weighed on the Australian dollar, which fell to US71.66c yesterday, its weakest level since early last year.