Retail spending across Australia has remained resilient, despite a dip in activity during the key end-of-financial-year (EOFY) period.
June household spending data issued by the Australian Bureau of Statistics (ABS) shows $39.68 billion was spent on retail goods, up 4.7 per cent year-on-year.
But this growth figure showed a slowing from May’s 5.8 per cent yearly increase, despite June being the month of EOFY sales.
“Retail spending held firm in June, demonstrating Australian consumers remain more resilient than confidence measures would suggest,” Australian Retail Council’s (ARC) chief economist, Glenn Fahey, said. “Consumers have not stopped spending, but they are increasingly price-conscious and prepared to delay discretionary purchases until they see compelling value.”
Cafes, restaurants and takeaway food grew the fastest, at 7 per cent, followed by household goods, up 6.3 per cent. The most valuable category was food retailing, contributing $15.45 billion.
Fahey said the latest inflation figures also put the retail result into perspective.
“Once inflation and discounting are taken into account, real spending growth is fairly soft – around 1 per cent on a broad inflation-adjusted comparison,” Fahey added.
“That is positive growth, but it is well below what retailers would typically expect in a strong trading environment. Consumers are still spending, but the volume of additional goods and services being purchased remains modest.”
Large online retailers and department stores suffered a 0.1 per cent decline in sales, the only segment to fall from the prior year.
“Retailers continue to face elevated costs across wages, energy, insurance, freight, leasing and supply chains, while cautious consumers limit their ability to recover those costs,” Fahey said.
