Growth figures of domestic retail sales have been declining since 2014 and they reached a low-point in September 2017 when they registered a growth rate of just 1.5%. They then began increasing for about a year, only to stabilise at around 3.0% to 3.5% through late 2018. So far, 2019 has produced a number of low-growth months along with the odd surprisingly strong result, lowering the annual growth rate.
According to the latest ABS figures, total retail sales fell by 0.1% in July on a seasonally-adjusted basis, less than the +0.2% increase which had been expected and deterioration from June’s +0.4% increase. On an annual basis, retail sales increased by 2.4%, down a touch from June’s comparable figure of 2.5%.
Westpac senior economist Matthew Hassan said, “The result implies little or no boost from recent policy measures; the RBA’s recent interest rate cuts and the Government’s tax offset payments only likely to have started impacting cash flows from late in the month.” These measures should be evident “in the coming months.”