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Cafe Culture continues to elevate retail spending

According to the latest retail spending / trade figures for May 2023 published at the end of last month, there has been a seasonally adjusted increase of 4.27% compared to May 2022. Here is a breakdown of the performance of different categories and states:

Retail Spending graph by sector
  1. Cafes, Restaurants, and Takeaway Food Category: This category has performed well, with a significant increase of 12.67% in retail spending in comparison to May 2022. It indicates that consumer spending in the food service sector is strong.

  2. Food Categories: The seasonally adjusted figures for the food categories show an increase of 6.10% in comparison to May 2022. This suggests that overall food sales have experienced positive growth.

  3. Household Goods Category: The seasonally adjusted figures for the household goods category have decreased by 4.27% in comparison to May 2022. This indicates that consumers are increasingly feeling the impact of cost-of-living pressures, which in resulting in reduced spending on household goods.

Despite the announcement by the Reserve Bank of Australia (RBA) that the cash rate would remain at 4.1%, consumers’ concerns regarding cost-of-living pressures are unlikely to be alleviated. These concerns not only are continuing to affect families on a daily basis, they are becoming a significant burden.

Retail Spending graph

State-wise, all states have achieved seasonally adjusted sales growth in May 2023; however, South Australia (SA) and the Australian Capital Territory (ACT) have experienced sales growth greater than 6%.

The adjusted retail spending results across New South Wales (+4.32%), Victoria (+4.78%), Queensland (+1.90%), Western Australia (+5.75%), Tasmania (+1.96%), and the Northern Territory (+5.11%) reflect the tightening of household budgets nationwide.

This tightening is primarily driven by concerns about potential interest rate rises, the increasing and ongoing cost-of-living pressures.