ABS data suggests consumers are tightening their belts in response to cost of living pressures. Source: Unsplash/ Igor Karimov
An early start to warm weather, the Women’s World Cup and Afterpay Day kept Australians spending in August. Yet the 0.2% lift in retail sales was modest given those extra reasons to spend, strong population growth, and still-high inflation.
The lacklustre result recorded by the Australian Bureau of Statistics (ABS) followed a stronger 0.5% uptick in July and a 0.8% fall in June.
ABS head of retail statistics Ben Dorber said the subdued rise suggested consumers were tightening their belts in response to cost of living pressures.
In trend terms, retail turnover lifted 1.3% compared to August 2022 — the smallest trend growth over 12 months in the history of the series.
“Considering how high inflation and strong population growth has added to retail turnover in the past year, the historically low trend growth highlights just how much consumers have pulled back in response to cost-of-living pressures,” Dorber said.
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