Australian retail sales barely grew for a fourth straight month in May as gains in clothing purchases were offset by a rare drop in food sales, bolstering the case for another cut in interest rates next week.

The Australian manufacturing sector is contracting further, as evidenced by the Ai Group Industry Index falling to -29.3, driven by poor sales, which are a result of bad weather, increasing costs, and trade instability that have dampened buyer confidence.

Retail sales have rebounded as cooler temperatures sent Australian consumers flocking back to the shops in search of winter apparel.