Australian Retail Sales Up

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Australian Retail Sales Up

Australian Retail Sales Up By 0.3% During Q4 2023

The latest data shows a slight increase in Australian retail sales during Q4 2023. The 0.3% increase in retail sales was due to the increased shopping during the holiday season.

In general, retailers offer discounts during the holiday season. This was why many Australians spent more on retail shopping to avail of these discounts.

Despite the uptick, the turnover from the retail sector was still at 3-year lows. This is also a sign that the high-interest rates have seriously dented retail sales in Australia. However, more was needed for the RBA to lower the rates at the recent meeting.

Q4 Retail Sales Better Than Q3

On a Q/Q basis, a 0.3% increase was seen in retail sales during Oct-Nov-Dec. Compared with the -0.1% decline during Q3, the results from Q4 start to look a lot better.

The data also revealed that the retail sales turnover for the quarter was $98.30 billion (AUD) on a seasonally adjusted basis. This showed a minimal increase from the previous quarter's $97.97 billion (AUD).

And if we look at the retail sales for December, a 2.7% M/M decrease was seen. When we compare this decline with the forecast for a +0.1% jump, it becomes clear that the results were not good.

The jump in retail sales during November was primarily due to the Black Friday event. This also reveals a darker side - Domestic demand has taken a significant hit as Australians now wait for discounts to buy products/services.

According to one expert, the sales volume is still higher than what it used to be before the pandemic. But it is also a fact that the sales volume peaked in 2022.

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