June Retail Sales Up, Electronics Strong
Australian retail sales jumped a sharp 0.4% in June, beating economist expectations for a 0.3% lift – buoyed by income tax cuts and strong clothing sales.
Despite the lift, retail volumes failed to impress, with annual growth in turnover the worst result since 1991 – up 0.2% over the year.
Analysts warn of continued retail uncertainty, with fierce online competition further threatening traditional retailers.
Household goods retailing jumped 0.2% in June [seasonally adjusted], with the electrical and electronic goods subgroup soaring 1.1%.Department store sale dived 0.6% [seasonally adjusted] – the third decline in four months – with David Jones claiming a ‘recession.’
The premium department store has slashed $437 million in value from its chain, citing “unprecedented economic pressures.”Clothing, footwear and personal accessory retailing jumped a notable 2% [seasonally adjusted].
The news comes after the RBA cut official interest rates for the first time since 2016 in June.
Further interest rates are deemed possible, amid high household debt and sluggish wage growth.