The trend estimate for retail sales, which strips the figures of monthly volatility, rose 0.3 per cent during June, in line with May’s 0.3 per cent result.
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This growth was offset by declines in clothing, footwear and personal accessory retailing, which fell 1.4 per cent in June, and department store turnover, which shrank 0.1 per cent. In early-afternoon trade it was fetching US72.90¢.
Ms McPhee said a strong housing market across Australia drove strong results for the household goods sector, which was the largest contributor to the June increase with a 2.2 per cent increase. Analysts said growth here reflected measures in the May budget to encourage spending by small companies and the pick-up in home building and investment activity.
Australian retail sales beat forecasts in June with the biggest rise in four months while household spending for the whole second quarter looked to have boosted economic growth, an upbeat outcome that gave the local dollar a lift. Mr Kennedy said retail spending had been very weak in the past couple of months.
For the second quarter of 2015, the value of retail sales advanced 0.8 percent on quarter to A$70.302 billion.
Turnover climbed 1.1 per cent at cafes, restaurants and catering services; spending on takeaway food was up 1.5 per cent.
Further improvement in consumer spending would help remove any remaining pressure on the central bank to lower rates again.
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Stronger than expected retail sales supports the view that the Reserve Bank of Australia will keep the official cash rate on hold later Tuesday.
