Australian retail sales jumped in November for a second month as Aussie households splurged again before Christmas.
Data released from the Australian Bureau of Statistics on Tuesday showed that Australian retail sales surged 7.9% in November. The latest data follows an already impressive 4.9% increase in October whilst most of the country ended a harsh coronavirus pandemic lockdown. It is also the fourth-largest retail sales increase since records began.
November’s retail sales figures are more than twice as high as market expectations, with analysts forecasting a 3.9% increase.
On an annual basis, Australian retail sales increased 5.8% in November from the same time last year.
On a state-by-state basis, sales surged a record 20% in Victoria. New South Wales advanced 5.1% and the Australian Capital Territory soared19.2%.
Whilst the new omricon strain of COVID-19 is adding pressure on Australia and the Australian economy, it seems that the combination of Christmas, Black Friday, and a large amount of pent-up demand from people that had been saving during the lockdown, all contributed to a big retail splurge.
Ben James, the ABS’ director of quarterly economy-wide statistics, said in a note:
“Consumers brought forward Christmas spending to take advantage of sales and minimise delivery and stock availability concerns ahead of the festive season,”
“Further easing of Covid-19 restrictions in the southeastern states and territories has seen the retail industry recover all lost momentum caused by the delta outbreak,”
ANZ’s head of Australian economics David Plank pointed towards a stronger economic outlook for the world’s 12th largest economy. He said:
“The good news is that people are still relatively happy about their own financial circumstances,”
“This potentially sets things up for a rapid rebound once people are more confident about health outcomes.”
Difficult Start for 2022
However, despite the positive economic outlook, there are concerns over the potential impact of the omricon strain.
ANZ’s survey of consumer sentiment released on Tuesday showed a 2.2% decline for the last week. It showed that confidence in the economy not only ground to a sudden halt but went into reverse.
Analysts at ANZ also said that spending on the banks’ cards in the first week of January slumped to its lowest level since the lockdowns started. ANZ also stated that Sydney and Melbourne are particularly badly hit.
