Powered by MOMENTUM MEDIA
Powered by momentum media
Powered by momentum media
nestegg logo

Invest

Retail growth set to keep falling into Christmas

  • November 01 2016
  • Share

Invest

Retail growth set to keep falling into Christmas

By Jack Derwin
November 01 2016

Retail sales continue to weaken and are likely to worsen, weighing on what is normally a boom December quarter, according to the latest key index.

Retail growth set to keep falling into Christmas

author image
  • November 01 2016
  • Share

Retail sales continue to weaken and are likely to worsen, weighing on what is normally a boom December quarter, according to the latest key index.

Retail growth set to keep falling into Christmas

A weakening retail sector is a worrying sign given that household consumption makes up around 56 per cent of GDP in Australia, particularly going into the end of year holiday period, according to the World Bank.

The Australian Food and Grocery Council (AFGC) and CHEP Retail Index revealed year-on-year growth dropped from 3.5 per cent to 2.5 per cent from the June to September quarter, and was likely to continue falling over the coming months.

“The larger-than-expected fall in retail sales growth reflects a number of factors such as moderating jobs growth and record-low wages growth, a long-term deflation in food and grocery retail prices domestically and increasing input costs,” Australian Food and Grocery Council chief executive Gary Dawson said.

Advertisement
Advertisement

“This all adds up to the outlook, while still one of growth, being less robust than the food and grocery sector would like to see especially heading into the December quarter holiday period.”

Retail growth set to keep falling into Christmas

September year-on-year growth of 1.9 per cent was set to fall to 1.6 per cent in November, according to the index.

“We know through experience that the index is a very accurate lead indicator of retail sales growth. The insights provided by this forecast should help customers prepare for and manage their supply chains more efficiently throughout this period,” president of CHEP Asia Pacific Phillip Austin said.

Weakening retail spending did not appear to be confined to Australia, with a soft patch in consumer spending weighing on retailers in the US going into the end of the year.

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on X for the latest updates
Rate the article

more on this topic

more on this topic

More articles