Australians have turned off the faucet on spending regardless of reducing inflation, with even mid-year gross sales not sufficient to spice up retail turnover.
Retail turnover fell 0.8 per cent in June 2023, in accordance with figures launched on Friday by the Australian Bureau of Statistics (ABS).
The latest figures reversed a 0.8 per cent rise in turnover in May and added to a 0.1 per cent fall in April.
“Retail turnover fell sharply in June due to weaker than usual spending on end of financial year sales. This comes as cost-of-living pressures continued to weigh on consumer spending,” ABS head of retail statistics Ben Dorber mentioned.
“There was extra discounting and promotional activity in May, leading up to mid-year sales events. This delivered a boost in turnover for retailers, but that proved to be temporary as consumers pulled back on spending in June.”
The grim figures come as inflation continues to lose steam, with the buyer worth index rising 6.0 per cent within the 12 months to the June quarter, down from its peak of seven.8 per cent in December.
Most business figures fell, with department shops down 5.0 per cent adopted by different retailing in addition to clothes, footwear and private accent retailing, which each fell by 2.2 per cent.
Household items fell for the eighth month previously yr, declining by 0.1 per cent.
Meanwhile, Aussies appear to be turning away from consuming out, with spending in cafes, eating places and on takeaway meals companies down 0.3 per cent, whereas meals retailing grew by 0.1 per cent.
“Over the last 12 months, growth in food-related spending has mostly been driven by rising food prices, Mr Dorber said.
“We saw in Wednesday’s release of the consumer price index (CPI) that food prices rose again in the June quarter. Consumers are responding to these price rises by changing to cheaper brands or by simply buying less.”
Source: www.perthnow.com.au
