Sign economic growth has ‘come to an end’

The sturdy post-lockdown spending which fuelled a lot of Australia’s financial development in 2022 has formally come to an finish, new information from the Australian Bureau of Statistics reveals.

According to the ABS, retail gross sales fell 0.2 per cent within the December quarter – the primary drop since September 2021.

With one other rate of interest rise on Tuesday anticipated to place additional stress on family spending, there are indicators the downward pattern may proceed.

The quarterly 0.2 per cent drop was led by non-food industries as Australians tightened their discretionary spending on account of the mounting value of dwelling and eight consecutive rate of interest rises.

Ben Dorber, head of retail statistics on the ABS, mentioned whereas retail costs stay excessive, worth development slowed to 1.1 per cent in the course of the quarter, as a result of flat meals retailing costs and extra discounting throughout Black Friday gross sales.

“This was the smallest rise in retail prices for 2022,” Mr Dorber mentioned.

“The consumer price index for the December quarter grew more than retail prices, reflecting the stronger price growth in services seen in the quarter.”

Around the nation, retail commerce volumes fell in 5 of the eight states and territories.

Department shops felt probably the most vital quantity fall with a 2.9 per cent decline. Clothing and footwear retail gross sales had been down 2.3 per cent and family items retailing was down 2 per cent.

Meanwhile, meals retailing skilled the biggest rise, with a 2.1 per cent improve – the primary for the reason that Covid-19 Delta lockdowns ended.

Despite this quarterly development, Mr Dorber mentioned meals retailing volumes had been down 1.4 per cent in comparison with the December 2021 quarter.

Cafes, eating places and takeaway meals providers felt the results of a normalising trade, recording a extra “subdued” 0.3 per cent improve.

“Given the volatile nature of spending in November and December, it is useful to look at the quarterly results, which provide a clear indication of recent retail activity,” Mr Dorber mentioned.

“The fall in the December quarter sales volume suggests the robust post-lockdown spending that fuelled much of the growth in 2022 has come to an end.”