Australian retail sales fell for the first time in October, marking the end of nine consecutive months of sales growth.
Australian retail turnover fell 0.2 per cent overall in October, following a 0.6 per cent rise in both August and September 2022.
This fall was driven by a 2.4 per cent drop in department store spending, the second month in a row that consumers have opted to avoid department stores, following a 0.4 per cent drop in September.
“The October fall in retail turnover ends a run of nine straight monthly rises and suggests increased cost of living pressures including interest rate rises have started to weigh on consumer spending,” explains Ben Dorber, ABS head of retail statistics.
“Turnover fell in all industries in October except for food retailing, which rose 0.4 per cent boosted by flood-related spending in parts of Australia and continued high food prices.”
Household goods retailing fell for the second consecutive month, down 0.5 per cent, which marks the fifth fall in the last seven months. Cafes, restaurants and takeaway food services recorded its first fall since January.
“Elevated post lockdown demand and price increases had boosted sales throughout the year in cafes, restaurants and takeaway food services. A slowdown in growth in recent months, capped off by the fall in October, shows trading conditions continued to normalise”, Dorber concluded.
Spend was down across the country, with the NT’s 1.8 per cent drop marking the largest, with NSW and Victoria each experiencing a more modest 0.1 per cent fall.
While Queensland and New South Wales had small percentage falls, these states recorded the largest falls in dollar terms.
