Australian consumers have shrugged off their aversion to spending or, at least temporarily, according to April retail sales figures released by the ABS. Part of the rebound was related to a bounce in spending in Queensland after Cyclone Debbie while some of it came from higher fresh fruit and vegetable prices which was also Debbie-related. Sales grew by 1.0% over the month, which is well over the +0.3% growth expected and a reversal of declining sales in February and March. On a year-on-year basis, sales grew by 3.1%, which is a return to January’s annual rate after February and March annual figures fell towards 2%.
Westpac senior economist Matthew Hassan points to Queensland as providing the impetus for the rebound. “Retail sales came in better than expected for April with a stronger post-cyclone rebound in Queenland and some solid gains across other states. Overall the result is considerably better than feared, confirming temporary impacts from weather events were a factor in March and suggesting underlying conditions have improved somewhat.”
