Retail sales were again flat to weak in February, continuing the lacklustre growth first seen last September as the rapid rises in interest rates started biting at consumer spending.
The Australian Bureau of Statistics said sales rose 0.2% in February to be 6.4% higher than February 2022.
With inflation running at around 7%, sales fell in real terms for another month.
The ABS pointed out that sales of discretionary goods were again weak as consumers directed their spending to non-discretionary products and services such as food, rent, energy and petrol.
In current dollar terms sales in February totalled $35.144 billion, down a substantial 2% or $700 million from November’s all-time peak of $35.844 billion. And that’s after inflation running at 7% in those four months.
This follows a 1.8% rise in January 2023, down from the first reported 1.9% rise which was only a partial rebound from the 3.9% slump in the usually strong Christmas month of December.
Ben Dorber, ABS head of retail statistics, said retail sales rose modestly in February and appear to have levelled out after a period of increased volatility over November, December and January.
“On average, retail spending has been flat through the end of 2022 and to begin the new year.”
“Spending in food related industries continued to grow steadily in February, with cafes restaurants and takeaway food services up 0.5 per cent, while food retailing rose 0.2 per cent.”
“Non-food industry results were mixed as consumers continue to pull back on discretionary spending in response to high cost of living pressures,” Mr Dorber said.
Of the non-food industries, department stores sales rose 1.0% in February, followed by clothing, footwear and personal accessory retailing (+0.6%).
Other retailing was the only industry to record a fall this month, down 0.4%, while household goods retailing remained relatively unchanged (0.0%).
Retail turnover rose modestly across most of the states and territories, with rises at 1.0% or less, according to the ABS. Queensland recorded the only fall in turnover, down 0.4%.
