Yesterday, the Australian Bureau of Statistics released retail trade data for March, with a modest increase of just 0.8% compared to the same month last year, despite being bolstered by an early Easter.
The subdued result shows Australians are still cutting back on spending as the lag effect of interest rates continues to take hold. The discretionary categories of household goods, clothing, footwear and accessories and department stores all recorded declines. More here.
On a related note, economists are now tipping interest rate cuts to come later than hoped – in 2025. If this is the case, it will see the slowdown in discretionary spending continue longer than first anticipated.
More than 6 million Australians are paying mortgages, and this remains the biggest financial stressor for these households. The Reserve Bank is due to hand down its next monetary decision on Tuesday, and the retail community will be watching with interest.
In events news, the ARA CEO Lunch 2024 is just around the corner – on May 23 at the Meers Hall, Art Gallery of NSW. A handful of tickets remain – please join us at this agenda-setting event.