Australian retail turnover slumped in June, falling 0.8% month-on-month according to the latest retail figures from the Australian Bureau of Statistics (ABS).

That marks a 2.3% increase on the same time last year.

The month-on-month drop was spurred by decreased spending at department stores (down 5%), other retailing (down 2.2%), and footwear and personal accessory retailing (down 2.2%). 

Retail turnover fell sharply in June due to weaker than usual spending on end of financial year sales,” ABS head of retail statistics Ben Dorber said.

"This comes as cost-of-living pressures continued to weigh on consumer spending."

Australia's total seasonally adjusted retail turnover came to $35,190 million in June, down from close to $35,525 million in May.

The retail trade read is the last notable piece of data to land before the Reserve Bank of Australia (RBA) board's August meeting, to be held on Tuesday.

It follows the release of the quarterly consumer price index (CPI) read, published on Wednesday.

It found headline inflation continued to fall in the June quarter, coming in at 6% – down from its peak of 7.8% in the December quarter.

The CPI read took experts by surprise, with major bank economists previously predicting the annual inflation rate to come in as high as 6.3%.

Though, those at NAB were on the money on Wednesday, but they weren’t so fortunate today.

NAB, along with Westpac, forecasted retail spending to fall 0.2% in June, following the recent release of NAB’s monthly online retail sales index and quarterly Business Survey.

The former found online retail sales fell 4.1% month-on-month in June, on a seasonally adjusted basis, but were relatively flat year-on-year, recording growth of 0.1%.

Leading the downturn in the bank’s data was online spending on takeaway food, personal and recreational goods, and homewares and appliances.

The latter found the outlook for the retail sector had softened.

Meanwhile, CBA had tipped retail sales to be flat for a second consecutive month and ANZ predicted a 0.4% uptick.

Both expected end-of-financial-year sales to bolster the figure.

Australia awaits RBA August decision

Today’s release from the ABS could also have implications for the Reserve Bank of Australia’s August meeting.

The RBA board will meet on Tuesday and is expected to decide whether to hike the cash rate or to extend its pause, holding it at 4.1%.

CBA tipped the central bank to hike by 0.25%, bringing the cash rate to a peak of 4.35%, earlier this week.

However, it refused to lock in its prediction until hearing of the retail trade print.

Westpac also thinks rates will be lifted in August, while ANZ and NAB are expecting a pause.


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Update resultsUpdate
BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
4.40% p.a.
5.75% p.a.
Intro rate for 4 months
then 4.40% p.a.
$289
4 months
$0
$250,000
$0
$0
Featured
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Bonus rate of 5.50%
Rate varies on savings amount.
5.50% p.a.
$276
$0
$100,000
$0
$0
Featured *Rate varies on savings amount
  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
4.75% p.a.
5.35% p.a.
Intro rate for 4 months
then 4.75% p.a.
$269
4 months
$0
$249,999
$0
$0
Featured
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
2.85% p.a.
3.55% p.a.
Intro rate for 4 months
then 2.85% p.a.
$178
4 months
$0
$49,999
$0
$0
Featured
  • For deposit amounts $0 - $49,999
  • New ING personal savings customers receive an introductory bonus 0.50% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
  • Reverts to variable ongoing rate. T&Cs apply.
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Lucrezia Carnelos on Unsplash





Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy