Australian retail sales witness modest growth in September
Retail sales rose 2 per cent year on year to $35.87 billion in September, Australian Bureau of Statistics (ABS) data showed.
The data prompted both the Australian Retailers Association (ARA) and the National Retail Association (NRA) to urge the Reserve Bank of Australia to keep the current interest rates to encourage more consumer spending.
“The Reserve Bank of Australia’s monetary decision [tomorrow] will be pivotal to the success of retailers during the most important trading time of the year – and we urge the RBA to hold interest rates considering this,” said ARA CEO Paul Zahra.
ABS data revealed that cafes, restaurants, and takeaway sales rose 6.1 per cent to $5.45 billion while food sales jumped 3.5 per cent to $14.16 billion.
“Food and takeaway again led the spending growth, and this is consistent with what we’ve seen all year – shoppers are prioritising the essentials in a cost-of-living crisis,” said ARA CEO Paul Zahra.
Other retailing composed of recreational, sporting goods, and cosmetics rose 1.6 per cent to $5.5 billion, while department store sales went up 1.3 per cent to $1.92 billion. Clothing, footwear and personal accessory sales inched 1.1 per cent higher to $3.02 billion.
“Pausing interest rates again this month will allow consumers to spend more freely during the November/December sales period and will set retailers up for the coming silly season,” said NRA deputy CEO Lindsay Carroll.
“We hope consumer sentiment increases as retail’s biggest sales season approaches, resulting in a positive start for retailers moving into 2024.”
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