Retail spending in Australia remains on an upward trajectory, after turnover jumped 0.3 per cent in May.
The latest Australian Bureau of Statistics (ABS) data showed food and household goods retailing posted the most impressive figures, rising 0.7 and 0.9 per cent respectively.
Furthermore, almost all states and territories saw improvements, with New South Wales leading the pack on 0.7 per cent growth. Queensland and Western Australia both achieved 0.2 per cent gains, while Victoria was the only state to experience a slump with a drop of 0.1 per cent.
The Australian Retailers Association (ARA) welcomed the news, claiming the recent Federal Budget continues to spread confidence in the economy. The organisation’s executive director, Russell Zimmerman, said the Abbott government’s approach seems to be spurring activity.
“Consumers appear to have been more confident with the government’s more conservative budget, and that has played out in the pleasing boost to May 2015 retail trade figures,” he explained.
“In addition to the more appealing spending conditions, many states have seen an earlier winter in 2015, driving more shoppers into stores for winter essentials, such as heating appliances and winter fashions.”
He warned retailers not to get too complacent, as while the monthly figures are impressive, year-on-year data is often a better indicator of long-term performance.
The potential for an unforeseen event could also interrupt business operations, which is why companies in the sector should always invest in comprehensive retail insurance to protect their operations.
Nevertheless, the retail sector is showing clear signs of strength, with annual revenues up 4.4 per cent when compared with May last year. Household goods have seen the lion’s share of the growth at 9.5 per cent, while clothing, footwear and personal accessories is close behind on 8.8 per cent.