Australia Aug retail sales rise 0.3 pct

Retail sales in August rose a seasonally adjusted 0.3 pct from July to 18.1766 bln aud, the Australian Bureau of Statistics (ABS) said. The increase exceeded the market consensus forecast of 0.2 pct. In July, retail sales rose by a revised 0.5 pct from June, less than the initial estimate of a rise of 0.6 pct. Compared to a year earlier, retail sales were 5.6 pct higher in August. There were increases of 2.2 pct in the "other retailing" category, 1.7 pct in the clothing and soft goods category, 1.4 pct in the hospitality and services category, 1.1 pct in the recreational goods category and 0.6 pct in the food category. Retail sales of household goods were unchanged. The department store category was the only one to show a fall, dropping 7.2 pct.

Australia Aug building approvals fall 12.6 pct

Total building approvals in August fell a seasonally adjusted 12.6 pct from July to 12,432 units but were up 2.1 pct year-on-year, the Australian Bureau of Statistics (ABS) said. The market consensus forecast was for a 3.0 pct drop in August from the previous month. In July total building approvals jumped 8.3 pct from June. The ABS said private sector home building approvals in August rose 1.1 pct on a seasonally adjusted basis to 8,952 units from July and were up 7.5 pct from a year earlier. However, other dwelling approvals slumped 36.9 pct month-on-month to 3,213 units and were down 9.1 pct year-on-year. The ABS released the following table, with percentage changes: August mth-on-mth yr-on-yr Total dwellings (adj) 12,432 -12.6 +2.1 Private sector houses (adj) 8,952 +1.1 +7.5 Private sector other dwellings (adj) 3,213 -36.9 -9.1 Total dwellings (trend) 13,182 +0.7 +3.2 Private sector houses (trend) 8,820 +0.4 +0.9 Private sector other (trend) 4,084 +1.0 +9.9

Australia Sept qtr NAB business confidence index drops to 2 pts vs 8 in June qtr

National Australia Bank said its business confidence index fell to two points in the September quarter from eight points in the June quarter. In the September quarter a year earlier, the index stood at seven points before peaking at 11 points in the March quarter. In a preliminary report, NAB said the fall in the September quarter reflected the impact of two interest rate hikes this year by the Reserve Bank of Australia, high fuel prices, and concerns about equity market returns. "A slowdown in activity, rising costs and higher interest rates have weighed on the confidence of many businesses during the past few months," NAB group chief economist Alan Oster said. The preliminary report was released ahead of NAB's full quarterly business confidence survey on Thursday, which will include its latest economic forecasts for Australia, and its new, quarterly small to medium enterprise (SME) survey on Monday. Oster said results from the September quarter surveys across Australia's entire business sector show confidence remains higher among SMEs, in particular those smaller businesses with annual sales turnover of from 25 mln aud. NAB executive general manager for business and private banking, George Frazis, said NAB bankers throughout the bank's branch network also see business confidence as having peaked, with confidence and activity levels varying across sectors. Frazis said the easing in confidence follows very strong business growth and investment over the past two years. He said NAB bankers view construction and property developers, mining and health services as the best-performing sectors. But Frazis said they also reported some parts of the agriculture sector are struggling because of continuing poor seasonal conditions. He said the NAB bankers also reported the transport & storage sector and parts of the retailing, recreational and personal services sectors have been negatively impacted by a slowdown in household spending, associated with higher fuel prices and more subdued housing and equity market returns. NAB is Australia's leading lender to business, banking almost one in four businesses and more than one in three SMEs.

Australia Sept AIG performance of manufacturing index up 1.4 pts at 53.5

The Australian Industry Group/PricewaterhouseCoopers performance of manufacturing index (PMI) in September rose 1.4 points to 53.5 from August. AIG said the rise indicates the manufacturing sector is continuing to grow at a moderate pace after stalling in July. The index's rise takes it comfortably above the 50.0 level separating expansion from contraction. In August, the index rose 2.4 points to 52.1, after falling 4.8 points in July from June to 49.7 points. AIG said the slight strengthening in activity was largely attributable to a further pick-up in production growth and an accompanying increase in employment. Activity expanded in eight of 12 sectors, up from seven in August. AIG said industrial-based sectors again performed well, while results were mixed in the consumer and construction-related sectors. It said fabricated metals recorded the strongest expansion in activity in September, while growth also improved in machinery & equipment and transport equipment. Growth strengthened in food & beverages and wood, wood products & furniture, but eased in clothing & footwear. Activity declined in paper, printing & publishing and fell in basic metal products, for the third consecutive month. AIG chief executive Heather Ridout said the September result consolidates a pick-up in manufacturing activity that has been apparent in recent months. But Ridout said consumers remain nervous, which is being reflected in weaker results in those sectors dependent on consumer spending. "It is clear that any further pick-up in manufacturing activity will depend upon the future course of housing and interest rates," Ridout said.