Research Team at NAB, notes that at -0.2% the latest seasonally adjusted NAB online retail sales index shows sales contracted slightly in January, after very strong growth in December (1.9%). Key Quotes “At 0.6%, the trend estimate for online retail sales was slightly slower than the previous month. This suggests that looking through the month to month volatility, sales are still growing. ABS data showed growth of comparable traditional retailers in December to be flat (0.0% mom, s.a.), and 4.7% higher than a year ago. At 10.6% over the year, growth of online retail is more than double that of traditional retail sales. In dollar terms, we estimate Australians spent $19.2 billion on online retail in the 12 months to January 2016. This level is equivalent to 6.6% of spending at traditional bricks & mortar retailers as measured by the ABS in the 12 months to December 2015. In year on year terms, all retail categories sectors except Daily Deals (-8.2% yoy) had sales higher than last January, though most slowed relative to December. Annual growth was highest for food catering (+42.3% yoy). This category still represents a relatively small share of spend and is a relatively new addition to the index. Sales growth in the next fastest category, Media, accelerated slightly (23.9% yoy from 22.2% in December). All other categories had slower growth rates: Electronic Games and Toys (27.1% yoy vs 31.8% in December), Personal and Recreational Goods (9.5% yoy vs 11.9% in December), Fashion (7.1% yoy vs 10.2% in December), Grocery and Liquor (5.1% yoy vs 9% in December) Homewares and Appliances (3.4% yoy vs 5.5% in December), and Department & Variety stores (3.1% yoy vs 4.4% in December).” For more information, read our latest forex news.