Retail data suggests that
households have finished battening down the hatches after channelling a
great chunk of their income into savings / File
A WELL-ANTICIPATED rise in retail trade in September confirms household spending is dawdling rather than standing stock still.
The Australian Bureau of Statistics (ABS) reported on Thursday that retail spending rose by 0.4 per cent in seasonally-adjusted terms, following two stronger gains, of 0.8 per cent in July and 0.6 per cent in August.
Despite these rises, earlier weakness meant the September total was still only 2.3 per cent higher than it was a year earlier, about in line with the rate of price rises through the year.
And the bureau's trend measure, which smooths out the humps and hollows in the data, showed monthly growth of 0.3 per cent, which would result in a pedestrian growth rate of only 3.7 per cent if it kept up at that pace for a year.
It is not clear why retail spending would be picking up right now, although the declines in the exchange rate from early August could have something to do with the most recent monthly rises as the lower exchange rate trickled through into prices.
Fading fears of interest rate rises may also have had an effect.
In any case, the quarterly figures show seasonally-adjusted growth of 0.6 per cent in real terms (after allowing for price changes) in the quarter - not particularly strong by historical standards but still as strong as any quarterly rise since the end of 2009.
That suggests that households have finished battening down the hatches after channelling a great chunk of their income into savings (or debt reduction) since the global financial crisis (GFC) in 2008.
Turning point
Australian National Retailers Association (ANRA) CEO Margy Osmond today said she hoped the rise marked "a turning point''.
"We are particularly heartened to see a big jump in the household goods sector which was up one per cent,'' she said in a statement.
"This is a reflection of the confidence Australians have had that the RBA would do the right thing and not put rates up leading into Christmas.''
Australian Retailers Association director Russell Zimmerman said the figures gave retailers hope.
"Retailers are now looking ahead to the festive season trading period and the recent interest rate cut from the RBA has given the industry a glimmer of hope that Santa will still be coming this Christmas,'' he said.
Meanwhile, eBay sellers are expecting biggest Christmas sales ever
In a recent survey, two-thirds of eBay’s top 3000 sellers said they are confident sales will increase by 30 per cent over the festive trading period.
“In the lead up to Christmas, 64 per cent of eBay’s top 3000 sellers expect to see an increase in sales during the holiday period,” eBay vice president Deborah Sharkey said.
Source: Australia News Network
The Australian Bureau of Statistics (ABS) reported on Thursday that retail spending rose by 0.4 per cent in seasonally-adjusted terms, following two stronger gains, of 0.8 per cent in July and 0.6 per cent in August.
Despite these rises, earlier weakness meant the September total was still only 2.3 per cent higher than it was a year earlier, about in line with the rate of price rises through the year.
And the bureau's trend measure, which smooths out the humps and hollows in the data, showed monthly growth of 0.3 per cent, which would result in a pedestrian growth rate of only 3.7 per cent if it kept up at that pace for a year.
It is not clear why retail spending would be picking up right now, although the declines in the exchange rate from early August could have something to do with the most recent monthly rises as the lower exchange rate trickled through into prices.
Fading fears of interest rate rises may also have had an effect.
In any case, the quarterly figures show seasonally-adjusted growth of 0.6 per cent in real terms (after allowing for price changes) in the quarter - not particularly strong by historical standards but still as strong as any quarterly rise since the end of 2009.
That suggests that households have finished battening down the hatches after channelling a great chunk of their income into savings (or debt reduction) since the global financial crisis (GFC) in 2008.
Turning point
Australian National Retailers Association (ANRA) CEO Margy Osmond today said she hoped the rise marked "a turning point''.
"We are particularly heartened to see a big jump in the household goods sector which was up one per cent,'' she said in a statement.
"This is a reflection of the confidence Australians have had that the RBA would do the right thing and not put rates up leading into Christmas.''
Australian Retailers Association director Russell Zimmerman said the figures gave retailers hope.
"Retailers are now looking ahead to the festive season trading period and the recent interest rate cut from the RBA has given the industry a glimmer of hope that Santa will still be coming this Christmas,'' he said.
Meanwhile, eBay sellers are expecting biggest Christmas sales ever
In a recent survey, two-thirds of eBay’s top 3000 sellers said they are confident sales will increase by 30 per cent over the festive trading period.
“In the lead up to Christmas, 64 per cent of eBay’s top 3000 sellers expect to see an increase in sales during the holiday period,” eBay vice president Deborah Sharkey said.
Source: Australia News Network
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