Shoppers kept their wallets shut last month, shunning spending on clothing, footwear, household goods and in department stores.
According to fresh data released by the Australian Bureau of Statistics on Tuesday, retail turnover slipped 0.4 per cent in March, well short of economists’ expectations of an 0.3 per cent increase.
Economists believe households have spent much of their pandemic-era savings buffers and are feeling stretched by still persistent inflation, particularly for labour-intensive services such as insurance, housing and education.
With the recent run of retail data affected by shifting seasonal patterns and one-off spending hits, such as Taylor’s Swift’s sold-out Eras Tour, the fresh figures indicate that consumer activity may be much weaker than previously predicted.
According to the fresh seasonally adjusted figures, shoppers spent a $151m less in March than the month prior, bringing total turnover to $35.7bn
Despite the reading, economists expect an uptick in consumer spending through 2024, as tax relief and easing inflation bolsters household budgets.
More to come.