This article is from the Australian Property Journal archive
CONSUMER spending picked up with the warmer weather over August, with spring shopping coming early this year.
According to the latest data from the ABS, retail spending was up 3.1% in August compared to the same time last year at $36.475 billion compared to $35.376 billion in August 2023.
On a month-to-month basis, spending was up 0.7%, after an increase of 0.1% in July and 0.5% in June. With the ABS attributing this to the warmer weather over the month.
“Retail spending was boosted this month by warmer-than-usual weather for this time of year,” said Robert Ewing, head of business statistics at the ABS.
“This year was the warmest August on record since 1910, which saw more spending on items typically purchased in spring. This included summer clothing, liquor, outdoor dining, hardware, gardening items, camping goods and outdoor equipment.”
The “other retailing” category again say the greatest growth annually, up 6.5%, followed again by food, up 3.8%, with department stores up 2.1%, clothing, footwear and accessories up 2.0%, household goods up 1.4% and cafes, restaurants and takeaway services up a modest 0.5%.
“Retailers employ thousands of people during the all-important Christmas trading period, providing jobs and boosting the Australian economy. Whilst there is great resilience within retail, we know there are many businesses in the sector that are doing it tough, especially small businesses,” said Paul Zahra, CEO at the Australian Retailers Association.
“The RBA needs to offer relief for consumers through a reduction in the cash rate when it next meets in November. Interest rates and cost-of-living pressures continue to impact Australians which is resulting in slowed consumer spending in most categories.”
By state, NSW saw the most spending over the month at $11.3 billion, an increase of 2.6% over the 12 months to August, with Victoria following at $9.4 billion, up 3.0%.
Queensland saw a 4.2% annual increase to $7.5 billion, Western Australia was up 4.6% to $4.15 billion and South Australia was up 2.2% to $2.3 billion.
While Tasmania was up 3.6% to $724 billion, the ACT was up 1.6% to $683 million and the Northern Territory saw the greatest growth, up 5.6% to $340 million.
“We typically see less spending during the colder months, which is why many retailers are shaking off the shackles of winter, embracing Spring and gearing up for a hopeful festive season – with Christmas merchandise already instore,” added Zahra.
“This remains one of retail’s most difficult years – with a continued slowdown in discretionary spend, high business costs along with ongoing challenges such as retail crime, supply chain disruptions, and the most significant workplace relations reforms in decades.”
In the June quarter ABS retail trade data revealed Australia’s retail sector has effectively been in recession for the last 18 months, according to Deloitte Access Economics’ latest Retail Forecasts.
