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
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
