SYDNEY: Australian retail sales tumbled more than expected in December, erasing the bumper gain of the previous month when consumers brought forward spending to take advantage of discounts like Black Friday.

       Sales slumped 2.7% last month, compared with an estimated 1.7% drop, Australian Bureau of Statistics (ABS) data showed yesterday. The result was the weakest in a year.

       Australian bonds extended gains following the data, sending the yield on policy sensitive three-year notes to 3.71%, down five basis points on the day.

       The weak outcome follows a downwardly revised 1.6% gain in retail sales in November due to heavy discounting, reinforcing a trend observed in recent years of weak December consumption.

       “This shift in spending from December to November reflects the growing popularity of Black Friday sales and the impact of cost-of-living pressures, with consumers seeking out bargains and taking advantage of discounts in November,” said Ben Dorber, ABS head of retail statistics.

       Retail sales can be an important consideration in interest-rate decisions, given consumption accounts for more than half of gross domestic product. — Bloomberg