Consumers spent $37.3 billion in March, four per cent higher than the same time last year, according to Australian Bureau of Statistics (ABS) data.
All categories were up year on year including household goods (four per cent), accessories (five per cent) and cosmetics (nine per cent).
However, cost-of-living pressures and economic uncertainty continues to impact consumer behaviour, says Australian Retailers Association (ARA) chief industry affairs officer, Fleur Brown.
“With a delay in interest rate relief, household budgets remain tight and retailers are operating in a highly competitive and volatile environment with rising business costs,” she comments.
“Any signs of stability in consumer spending are a welcome boost to business confidence, but we remain far from a retail recovery. Alongside the cost-of-living crisis, retailers continue to be impacted by years of rising costs from rent and wages to energy, insurance, transportation and all kinds of supply chain impacts.”
National Retail Association (NRA) interim CEO Lindsay Carroll adds that retailers are beginning to see the sunny side up of spending after a few years of dreary sales.
“The March data is an encouraging sign that retailers are beginning to bounce back from strained spending and high business costs,” she says.
“Consumer confidence is showing early signs of recovery, we just need policymakers to help the sector keep up this momentum.”
Indeed, after the recent Labor win for a second term in government, CEO designate of the Australian Retail Council (ARC) Chris Rodwell says retailers are particularly keen for the government to take measures to lift flagging productivity and to see the cost-of-living relief measures flow through to the checkout.
“The ARA and NRA stand ready to support a coordinated national effort to promote higher productivity because it is the foundation stone for a strong economy and improved living standards,” he comments.
“It is critical we seize the moment in this term of government as our nation can’t afford for the agenda to slip into the 2030s. The state of our economy and national finances reflect it is already overdue.
“Retail performance impacts every Australian and it’s clear that we need strong economic leadership to support the sector through a challenging climate.”
