Retail trade increased by a seasonally adjusted 0.3% in September, following a 0.3% rise in August and a 0.7% rise in July, according to the latest figures from the Australian Bureau of Statistics.
Trade rose to a seasonally adjusted $20.509 billion, from a downwardly revised $20.45 billion in August. However, the result is still below expectations, with a median forecast of a 0.5% increase for the month.
Cafes, restaurants and takeaway food services recorded a 1.5% increase, with “other” retailing jumped 0.8%, household goods was up 0.1% and clothing, footwear and personal accessory retailing also rose 0.1%. Food retailing and department stores have remained flat.
Victoria recorded a 0.7% increase in trend terms, while New South Wales recorded a 0.4% increase. Queensland Western Australia recorded increases of 0.3% and 0.2% respectively, while the Northern Territory remained flat.
Tasmania recorded a 0.3% decrease, South Australia also recorded a 0.1% fall, along with the Australian Capital Territory, which also recorded a drop of 0.1%.
The ABS also released figures showing the trade balance has dipped slightly, moving to a seasonally adjusted surplus of $1.76 billion. A Reuters poll predicted the result would range anywhere between $1.3 billion and $3 billion.
Overseas, the Canadian government has blocked BHP Billiton’s $US39-billion bid for Potash, with the company announcing its disappointment in a statement.
“BHP Billiton will continue to cooperate with the Minister and the Investment Review Division of Industry Canada and will review its options,” the company said. It now has 30 days in which to convince the Government to reverse the decision.
“I can confirm that I have sent a notice to BHP Billiton indicating that, at this time, I am not satisfied that the proposed transaction is likely to be of net benefit to Canada,” Industry Minister Tony Clement said in a statement.
“I came to this decision after a careful and rigorous review of the proposed transaction.”
Also overseas, News Corp has announced its profit lifted by 36% in the three months to 30 September, with total net income of $US775 million.
“With continued subscriber growth in new and established channels throughout the world, and a global advertising recovery, our domestic and international channels now account for 25 per cent of our revenues, and uniquely position us for profitable expansion of these franchises in the years to come,” chief executive Rupert Murdoch said in a statement.
“We continue to invest in superior content across all of our businesses, ensuring the best in news, sports and entertainment, competitively positioning our business for long term growth,” he said.
Shares higher after Fed action
The Australian share market has opened higher this morning, following a strong lead from Wall Street, where stocks rose due to positive sentiment after the Fed announced new measures to stimulate the economy.
The benchmark S&P/ASX200 index was up 18 points or 0.39% to 4740.9 at 12.15 AEST, while the Australian dollar remained above parity this morning, staying at $US1.002.
Rio Tinto chief executive Tom Albanese has said speculation regarding the global supply of metals is “perhaps premature”.
“A look at any iron ore growth chart will tell you that there has been tightness of supply in recent years,” he said in China. “Global iron ore production has been simply outpaced by the rapid growth in China.
“And despite enormous capital investments in new production capacity, there are still shortfalls in iron ore supply that the industry is trying to close.”
Leighton Holdings has said its first quarter profit has been affected by the Brisbane Airport Link project.
“While revenue is up by almost $200 million to $4.7 billion, the September results reflect a deterioration of $85 million when compared to last year, due primarily to the Airport Link project,” chairman David Mortimer said at the company’s AGM.
“Our reported profit after tax (unaudited) for the quarter is therefore $48 million versus last year’s $131 million.”
Westfield enters trading halt
Westfield has said it will enter a trading halt pending an announcement, with the halt to remain until 8 November or whenever the announcement is made.
The halt comes after the company said it plans to raise $3.5 billion to create a new retail trust. The company will distribute $7.3 billion worth of equity to shareholders in the form of securities in the new trust.
Overseas, new data shows the US economy has picked up some pace. New figures from ADP Employer Services shows private employers added 43,000 jobs in October, more than twice as many as expected.
The figures came as the Institute for Supply Management also said the index for non-manufacturing activity rose to 54.3 last month from 53.2.
Stocks on Wall Street also rose high as investors welcomed more action from the Fed to boost economic growth. The Dow Jones Industrial Average gained 26.41 points or 0.24% to 11,215.13.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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