Retail trade figures settle, up 2.4% in June

author-avatar By on July 22, 2020
Retail trade figures settle, up 2.4% in June

Photo by HUNTER LEONARD on Unsplash

Retail sales figures have jumped 2.4% for June, following three months of extreme volatility.

Retail sales figures ticked higher in June, up 2.4% according to Australian Bureau of Statistics (ABS) preliminary retail trade figures released today.

Increased spend in cafes, restaurants, takeaway food and clothing drove much of the result. 

Supermarket and grocery spend also remained high, with evidence of stockpiling of toilet paper, flour, rice and pasta happening at the end of June in Victoria.

"The annual growth reflects a continuation of more food being prepared and consumed at home due to social distancing," the ABS said.

The ABS noted that while the result shows some signs of improvement, many industries remain below the levels of the same time last year.

It comes after three months of extraordinary retail volatility that led to two record monthly gains and one record monthly decline of 17.9%.

absdata

Source: ABS

Westpac Senior Economist Matthew Hanlan said the figures were better than what the bank had expected.

"June preliminary retail sales came in much stronger than expected, posting a 2.4% rise vs our expectation of a milder consolidating gain of 0.5%," Mr Hanlan said.

"What limited detail is provided points to a mixture of drivers, with strong ‘reopening’ gains for cafes & restaurants and for clothing continuing in the month but also some evidence of renewed stockpiling expenditure, particularly towards the end of June and in Victoria.

"There is clearly a widening divergence in conditions across various states – a wedge that will become much more pronounced in July."


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Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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