According to preliminary data, Australia retail sales dropped -17.9% mom in April. That’s the biggest seasonally adjusted fall on record, and came after the biggest jump in March. Comparing to a year ago, retail turnover dropped -9.4% yoy. Falls were seen in every industry, with particularly strong falls in food retailing, cafes, restaurants and takeaways, and clothing, footwear and personal accessories.
Westpac-Melbourne Institute Leading Index dropped form -2.34 to -5.16 in April. The indicator points to a “broad-based economic contraction”. This is “easily the weakest reading since the GFC and is comparable to readings seen prior to Australia’s recessions in the 1990–91, 1982–83, 1974–75 and 1960–61.”
Westpac also said, ‘we do not expect the economy to return to pre-Coronavirus levels of activity before 2022.” But for now, RBA has already indicated that it’s “committed to maintaining its significant support for the economy for the foreseeable future.”
