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More Spending and Smarter Shopping in 2023.

Retail Trade Figures have been released and the shift in spending continues.

Retail Trade Figures for February 2023 were released last week, with a seasonally adjusted increase of 6.4% against February 2022.

Whilst Household Goods fell by 2.2%, there were still substantial increases across all other categories, with Cafes, Restaurants and Takeaway Food up 17.15%, Food increased by 7.97% and Department Stores by 7.71%

These numbers show that normality is starting to return, with Consumers now more focused on the increased Cost of Living pressures / Cost of Goods increasing, which is indicative of the Cafés, Restaurants and Takeaway Food category reduced spending.

State By State

All States across the country experienced seasonal retail sales growth in February 23.

Six states (New South Wales, Victoria, South Australia, Western Australia, Tasmania and Australia Capital Territory) reported sales growth greater than 6%.

This data reflects the cost of living pressures that many Australians are facing due to rising prices and stagnant wages, with the retail sales rates slowing to their lowest growth rate in the last 12 months and the National seasonal growth rate of +6.4% is also the lowest reported sales increase in 12 months.

Where to next

The RBA met again this week ahead of the Easter Break, and while many economists predicted another interest rate increase of 25 basis points, rates were placed on hold at 3.6% and the first reprieve for Australians since they started increasing in May 2022. 

We do anticipate that interest rates will increase this year, however this will help to reduce inflation and result in a slow in results in the coming months.

Information supplied by Australia Beureau of Statistics from the Australia Retail Trade data release.