Clear signs of slowing growth emerged in retail sales for June data from the Australian Bureau of Statistics yesterday.
The ABS said monthly retail sales growth was 0.2% in June, the slowest so far in 2022 and the Bureau hinted that much of the recent strong growth was due to rising prices and not rising volumes.
Ben Dorber, Head of Retail Statistics at ABS, said in a comment that: “While the 0.2% rise in June 2022 was the sixth consecutive increase in retail turnover, it was also the weakest so far this year.
Australian retail turnover rose 0.2% in June 2022 (seasonally adjusted) to a new record high, according to the Australian Bureau of Statistics (ABS).
The actual dollar increase was only $67 million, which is hardly convincing.
The June result follows a revised 0.7% rise in May 2022 (vs. 01% initially reported, then a 0.4% revision in the second estimate), a 0.9% rise in April 2022 and 1.6% in March, immediately after the Russian invasion. of Ukraine and the first sign of a new and stronger rise in prices.
“Given the price increases we have seen in the Consumer Price Index, it will also be important to look at changes in retail goods volumes, when quarterly data is released next week,” Mr. Dorber said.
Retail sales rose 12% last month compared to June 2021 – the consumer price index rose 6.1% at the same time, so the actual rise in retail sales will be d about half the figure of 12.2%.
“Results were mixed across all six sectors, with revenue up in three and down in the others, as cost-of-living pressures appear to be dampening expense growth,” said ABS.
Cafes, restaurants and take-out services saw the strongest growth, up 2.7% and were clearly the best performing sector over the quarter and the past year in particular with a 26% increase in sales.
The sector was followed by retail trade of clothing, footwear and personal accessories (1.3%) and other retail trade (0.5%). Department stores recorded the largest decline, down 3.7%, followed by food retail (-0.3%) and household goods retail (-0.3%).
Revenue increased in the Northern Territory (1.8%), Queensland (0.7%), ACT (0.6%), Western Australia (0.5%) and Tasmania (0.5%).
NSW was the only state or territory where turnover fell, down 0.2%. Revenue remained relatively stable in South Australia and Victoria.