Retail sales fall 0.1%, Job ads hit two-year high: Midday Roundup

Retail turnover fell 0.1% in December, according to the latest figures from the Australian Bureau of Statistics.

The figure provides more backing for the argument the RBA will cut rates tomorrow in order to stimulate the economy.

The seasonally adjusted estimate fell 0.1% in December, after a rise of 0.1% in November.

Household goods, clothing, food and cafes and takeaway services all recorded the highest increases, while “other” retailing fell by 0.2%, in trend terms.

The figures also show Western Australia recorded a 0.5% increase in trend terms, followed by South Australia at 0.3%, New South Wales at 0.2% and Victoria at 0.1%.

Queensland, Tasmania and the Northern Territory all recorded declines of 0.1%.

Job ads hit two-year high

Job advertisement figures have reached a two-year high in January, according to the latest ANZ survey, with the total figure 0.7% higher than the same time in 2011.

Total job ads in newspapers and on the internet jumped 6% during January – although ANZ head of economics Ivan Colhoun says the rise was driven by the mining industry, with unemployment still predicted to rise.

“The awaited significant acceleration in mining investment is now beginning to boost labour demand in these states,” Colhoun said. “We remain mindful of the usual problem of significant volatility in the monthly data over the December-January holiday period.”

“In spite of this caution, the pick-up in advertising in the resource states is of sufficient magnitude to outweigh any of these seasonal concerns.”

Shares rise after strong US jobs data

The Australian sharemarket has risen over 1% higher today following data from late last week showing the US unemployment rate has reached a three-year low.

The benchmark S&P/ASX200 index was up 51.5 points or 1.2% to 4302.7, while the Australian dollar has fallen after the retail trade data was released, down to $US1.07c.

AMP shares rose 1.42% to $4.28, while Commonwealth Bank shares rose 0.81% to $50.98. Westpac shares rose 1.59% to $21.12 as NAB rose 1.77% to $24.17.

Perpetual chief executive resigns

Perpetual chief executive Chris Ryan has resigned from his position after a disagreement with the board, the company has announced.

Former group executive of private wealth and retail distribution Geoff Lloyd has been named as Ryan’s successor.

“I have agreed with the board that we need to work harder and faster to refine the growth strategy for the business, deliver further meaningful cost reductions, and reinvigorate sales and distribution across the entire business,” Lloyd said in a statement.

Ryan will be provided a cash payment of $1.22 million upon his departure.

“Ryan will also be eligible to be considered for a short-term incentive payment in respect of the current financial year and will retain all unvested shares, for which vesting is conditional upon the performance hurdles being met,” the announcement stated.

Inflation gauge slows to 2.2%

A private gauge of inflation has shown prices remained subdued in January, suggesting the RBA has more power to cut rates at its February meeting tomorrow.

The TD Securities-Melbourne Institute gauge of inflation shows prices rose by 0.2% in January, after a 0.5% rise in December.

But the annual pace slowed to 2.2%, from 2.4%, well within the RBA’s 2-3% target.

Annette Beacher, head of Asia-Pacific research at TD Securities, said in a statement “there is clearly ample justification for the RBA board to take the next step and shift monetary policy into a more accommodative stance tomorrow”.