Retail Flat, “Consumers Holding On To Purse Strings”
Australian retail remains flat, as industry group call on Reserve to lower rates.
Retail sales growth was unchanged in June 2013 with zero growth, ABS Retail Trade figures, released today show.
This will disappoint retailers after sales rose 0.2 per cent in May. Year-on-year retail sales growth sit at 1.06 percent.
During June, cafes, restaurants rose services 0.9%, Household goods retailing were up 0.3%. Meanwhile, Department stores sales were flat, while ‘Other retailing’ (-1.1%), Clothing and personal accessory sales (-0.2%), both fell.
The figures for June echos the declining sales trend recorded in April and March, last.
ARA Executive Director Russell Zimmerman said the stagnant sales figures are a sign that the retail sector is still facing significant challenges.
“Retailer will now be looking to the Reserve Bank of Australia (RBA) to provide some much needed breathing room and reduce interest rates when it meets tomorrow. The RBA needs to cut official rates to 2.5 percent to get variable mortgage rates to a level of 6 percent in order to address a compromised economic situation.”
“Overall, the unchanged sales figures in June illustrates that consumers are still holding on to their purse strings and discretionary spending remains tight.”