Growth in Australian retail spending on strong consumer confidence

The Australian economy is on track for recovery as new economic data on retail spending show a strong level of consumer confidence.

Provisional retail trade in March release According to the Australian Bureau of Statistics, retail sales increased 1.4%, surpassing economists’ expectations of 1% growth.

The rise was led by Victoria and Western Australia, which also led to retail sales in February. Decrease After closing the border of the snapped state at that time.

Cafes, restaurants, and food take-out services are leading the rise with a 6% increase. However, national food retail sales fell by 1%.

All consumer confidence levels are also showing strong growth on a variety of indicators.

Westpac-Melbourne Institute Monthly Index (pdf) Reached the highest price in 11 years, but ANZ-Roy Morgan Evaluation Shows consumer confidence at levels prior to COVID-19.

“This is an extraordinary result,” said Bill Evans, Chief Economist at Westpack. “The survey continues to show that consumers will be a major driver of growth beyond the 2021 trend.”

Evans said a study conducted a week after the end of JobKeeper’s wage subsidy showed that the first concerns about associated unemployment that undermine self-confidence proved to be unfounded. It was.

Commonwealth Bank (CBA) has also released the latest version report About household spending intents that have shown growth in almost every category.

“Strengthening household spending intent reports is another signal that Australia’s economic recovery is underway,” said Stephen Halmalick, chief economist at CBA.

Fewer companies are worried about the termination of JobKeeper, which ended last month.

KPMG Research Of the 100 companies, only one-third expected the termination of JobKeeper to lead to a significant decline in economic activity and an increase in the unemployment rate.

In a previous survey in October, two-thirds of respondents had these concerns.

To repay COVID-19-related debt, most respondents favored increasing business productivity as the best way, saying that major tax reforms would be an important part. GST was selected as the preferred option for raising a single tax.

A March National Skills Commission vacancy report shows that the number of seasonally adjusted classified ads increased by 19.1% from February and 96.4% from March 2020. This was the 11th consecutive month of increase in classified ads.