The ABS has revealed that retail sales climbed 1.2% in November, whilst consumer sentiment has continued to improve and full-time job opportunities soar.
The figure which (reflects retail sales growth from October to November) exceeds economist’s expectations of a 0.4% rise.
The ABS attributes the strong growth to the release of the iPhone X, in addition to a flurry of sales promotions (e.g. Black Friday).
The RBA has held interest rates at a record low for over a year, recognising that reduced consumer spending has hampered economic growth. Household savings have reportedly dropped to their lowest levels in a decade, with income growth also minimal.
Notably, last year saw strong employment growth, notably in full-time roles. National unemployment has also decreased.
ANZ-Roy Morgan Australian Consumer Confidence Index welcomed the year on a pleasant note, notching the highest levels since November 2013. The index hit 122, jumping 4.7% from mid-December.
However, ANZ flags that the improved consumer sentiment may be influenced by Australia’s cricket wins and the joys of the holiday season.
