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
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
