Australia Retail Sales Jumps On Discounts

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Australia Retail Sales Jumps On Discounts

Australia'S Retail Sales Up By 2.2% On Black Friday Boom

The latest data from Australia shows a healthy increase in retail sales during November. The retail sales figure reached a 2-year high as spending increased due to Black Friday discounts.

However, some experts believe the jump in retail sales will likely reverse again next month (December). In October, a 2% increase was seen in Australia's retail sales, worth about $24.54 billion or around 36.51 billion AUD.

Discounts Led To Higher Consumer Spending

When compared with the last year, the sales in Australia have gone up by 2.2%. If we compare with the 19% jump that occurred after the pandemic, it becomes clear that the data was weak.

Given these circumstances, household incomes have been impacted by the higher cost of living and high-interest rates.

The Black Friday discounts mostly supported retail sales as consumers spent money on affordable products/services. Another fact highlighted in the recent data was that the promotional period was much more extended than in earlier years.

According to some experts, the sudden surprise from the retail sales data shows that consumers intentionally lowered spending in October. This was done to save money & and then take advantage of November's discounts.

In addition, it is also important to note that seasonal adjustment has distorted the retail sales data. This means the sales from November will end up affecting December's data.

If we look at the Australian economy, the interest rate is now at 4.35%, the highest level in 12 years.

recent report from Australia also showed that discretionary goods supported November's sales data. Conversely, household item sales jumped by 7.5%, while the earlier month's value was -1 %.

Additionally, spending on footwear, clothing, & other products from department stores increased by 2.7% to 4.2%.

As the latest retail sales (November) were distorted due to heavy discounts, there's a good chance the RBA will also note it!

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