ASX retail shares led the market surge yesterday, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) rising 1.81%.
Several of the ASX 200 consumer discretionary sector's largest shares hit multi-year high share prices yesterday.
They included Wesfarmers Ltd (ASX: WES) at $87.75; JB Hi-Fi Ltd (ASX: JBH) at $116.90; Harvey Norman Holdings Ltd (ASX: HVN) at $5.92; Eagers Automotive Ltd (ASX: APE) at $20.18; and Temple & Webster Group Ltd (ASX: TPW) at $25.15.
The S&P/ASX 200 Index (ASX: XJO) soared 1.23% to 8,770.4 points while the S&P/ASX All Ords (ASX: XAO) lifted 1.2% to 9,028.8 points.
The surge in ASX retail shares came amid new household spending data released by the Australian Bureau of Statistics.
Let's check it out.
ASX retail shares roar amid higher household spending
Household spending rose 0.5% in June, according to seasonally adjusted figures, following a 1% rise in May and a flat result in April.
Robert Ewing, ABS head of business statistics, said:
People buying more goods drove the overall rise in household spending in June.
Goods spending rose 1.3 per cent as households spent more on food, new vehicles, and electronics.
Meanwhile, spending on services fell by 0.5 per cent, after two months of growth.
Six of the nine spending categories lifted in June, led by furnishings and household equipment, up 2%.
Spending on clothing and footwear rose 1.6% and food spending lifted 1.5%.
The ABS said household spending is currently 4.8% higher than it was at this time last year.
Ewing said the data reflected "a steady improvement in consumer confidence as price pressures eased over the past year".
The positive household spending data follows a strong retail sales report for June.
Retail turnover rose 1.2% last month, according to seasonally adjusted figures, after a 0.5% bump in May and a flat April.
The new household spending figures follow better-than-expected inflation data for the June quarter, also released last week.
Does all this positive data mean it's time to buy ASX retail shares?
Brokers are backing these ASX retail shares for growth
Here are a few ASX retail stocks with buy ratings today.
Accent Group Ltd (ASX: AX1)
The Accent share price closed at $1.49 yesterday, up 1.71%.
Jabin Hallihan from Family Financial Solutions has an accumulate rating on this ASX retail share with a valuation of $2.11 apiece.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa shares finished Tuesday's session at $34.08, up 0.83%.
Morgans has given this ASX retail share an add rating and a $35 price target.
Shaver Shop Group Ltd (ASX: SSG)
The Shaver Shop share price also rose to a record high of $1.53 yesterday.
Shaver Shop shares are known for their generous fully franked dividends.
Even at a record high price, Shaver Shop shares offer a trailing grossed-up dividend yield of 6.7%.
My colleague Tristan reckons this ASX retail share is a buy for income investors.
JB Hi-Fi Ltd (ASX: JBH)
The JB Hi-Fi share price closed at $115.80, up 1.82% yesterday.
Bell Potter has a buy rating on JB Hi-Fi with a price target of $114.
Harvey Norman Holdings Ltd (ASX: HVN)
The Harvey Norman share price rose 2.07% to close at a four-year high of $5.92 yesterday.
Macquarie has an outperform rating on Harvey Norman shares with a price target of $5.90.
Eagers Automotive Ltd (ASX: APE)
Eagers Automotive shares closed at $20.08 on Tuesday, up 0.85%.
Macquarie has an outperform rating on this ASX retail share with a price target of $20.60.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster shares finished yesterday's session at $25.07, up 1.91%.
Morgan Stanley gives this ASX retail share an overweight rating and $28 price target.
Domino's Pizza Enterprises (ASX: DMP)
The Domino's Pizza share price rose 2.41% to $18.68 yesterday.
Ord Minnett has a buy rating on Domino's shares with a 12-month price target of $28.
Breville Group Ltd (ASX: BRG)
The Breville share price rose by 1.15% to $32.56 yesterday.
UBS has a buy rating on the kitchen appliances business with a price target of $35.50.
