Invest
The economy that stole Christmas
Retailers did not get their Christmas wish, with December sales falling by 0.5 per cent, seasonally adjusted for the month of December, official figures have shown.
The economy that stole Christmas
Retailers did not get their Christmas wish, with December sales falling by 0.5 per cent, seasonally adjusted for the month of December, official figures have shown.
The Australian Bureau of Statistics (ABS) figures showed what many economists expected, with consumers spending less or simply bringing spending forward.
The results showed that November is becoming the most important month for sales with a 1.0 per cent bump in retail sales.
“The December fall comes after a strong November, led by Black Friday sales,” said Ben James, director of Quarterly Economy Wide Surveys. “There were also some effects from bushfires and associated smoke haze apparent in New South Wales data. Specifically, food retailing and cafes, restaurants and takeaway food services were negatively impacted.”
There were falls for department stores (-2.8 per cent), cafes, restaurants and takeaway food services (-0.9 per cent), clothing, footwear and personal accessory retailing (-1.5 per cent), food retailing (-0.3 per cent) and household goods retailing (-0.3 per cent).
These falls were partially offset by a rise in other retailing (0.2 per cent).
According to UBS chief economist George Tharenou, the rate and tax cuts have had little impact on consumer spending, leading to a downgrade in consumption.
“December retail disappointed, with almost all tax and rate cuts repaying debt so far. We downgrade Q4 real consumption to 0.3 per cent,” Mr Tharenou said.
The results are not likely to improve in the new year, with Valentine’s Day tipped to fall flat in 2020.
According to Finder, only 13 per cent will purchase a gift or flowers for their partner, while one in two couples are ditching the night altogether.
Kate Browne, personal finance expert at Finder, said that for some Aussies, the “love tax” can put a dampener on Valentine’s Day celebrations.
“They say you can’t put a price on love, but anyone who’s ever tried to buy roses on Valentine’s Day might beg to differ.
“Prices for flowers and hotels tend to skyrocket in the lead-up to Valentine’s Day. A hotel room in the city can be marked up by as much as $100 during this time.
“You can make your partner feel special without blowing the budget. Cook a nice meal at home, have a bubble bath or go for a picnic. This can help to take the financial pressure off,” Ms Browne said.
RELATED ARTICLES
About the author
About the author
Economy
Australia's June quarter GDP growth driven by consumer and government spending
Australia's economy has shown unexpected resilience in the June 2025 quarter, with household and government consumption driving growth despite a significant decline in public investmentRead more
Economy
Australia's GDP surprise is real but operators should heed the growth mix warning light
Australia’s June-quarter growth beat expectations on the strength of household consumption and government spending, even as public investment sagged. The upside surprise signals resilience, but the ...Read more
Economy
Households carried the quarter: what Australia’s upside GDP surprise means for strategy now
Australia’s economy expanded faster than expected in the June 2025 quarter, with GDP up 0.6 per cent quarter-on-quarter and 1.8 per cent year-on-year — the strongest pace in two years. The kicker ...Read more
Economy
Inflation dynamics in Australia: Electricity subsidies and labour market in focus
In a recent economic analysis, experts from State Street have highlighted significant developments in Australia's inflation landscape, attributing the changes primarily to the withdrawal of ...Read more
Economy
Australia's economic growth driven by consumer and government spending: A closer look at the June quarter
Australia's economy has delivered a surprising performance for the June 2025 quarter, surpassing expectations with a growth rate of 0.6% quarter-on-quarter and 1.8% year-on-year. This unexpected ...Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's June quarter GDP growth driven by consumer and government spending
Australia's economy has shown unexpected resilience in the June 2025 quarter, with household and government consumption driving growth despite a significant decline in public investmentRead more
Economy
Australia's GDP surprise is real but operators should heed the growth mix warning light
Australia’s June-quarter growth beat expectations on the strength of household consumption and government spending, even as public investment sagged. The upside surprise signals resilience, but the ...Read more
Economy
Households carried the quarter: what Australia’s upside GDP surprise means for strategy now
Australia’s economy expanded faster than expected in the June 2025 quarter, with GDP up 0.6 per cent quarter-on-quarter and 1.8 per cent year-on-year — the strongest pace in two years. The kicker ...Read more
Economy
Inflation dynamics in Australia: Electricity subsidies and labour market in focus
In a recent economic analysis, experts from State Street have highlighted significant developments in Australia's inflation landscape, attributing the changes primarily to the withdrawal of ...Read more
Economy
Australia's economic growth driven by consumer and government spending: A closer look at the June quarter
Australia's economy has delivered a surprising performance for the June 2025 quarter, surpassing expectations with a growth rate of 0.6% quarter-on-quarter and 1.8% year-on-year. This unexpected ...Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
