Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge
Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge
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Australian online retail sales experienced a modest rise in May, as consumers continued to invest in fashion, games, and toys.
According to the latest figures from the National Australia Bank, there was a 0.7% increase in online sales for the month, compared to a 1.1% growth in April.
Over the past year, Australians have spent approximately $63 billion on online retail purchases.
The data highlights notable growth across most retail categories, although homewares, appliances, and takeaway food did not follow the upwards trend. The Northern Territory and Victoria led the growth, posting increases of 4.9% and 1.9% respectively. Conversely, Western Australia and Tasmania saw minor declines of 0.3% each.
Sally Auld, Chief Economist at NAB, notes the slowdown in online spending compared to April’s strong figures. Fashion spending particularly rebounded significantly in May, with continued robust performances in grocery and liquor sales, particularly in New South Wales and Victoria, which dominate market sales in these categories.
This increase in online retail sales comes ahead of the Australian Bureau of Statistics' release of the retail sales figures for May. ANZ economists are predicting a 0.2% rise in retail turnover, following a slight decline in April.
The broader Australian retail market has faced a tepid start to the year. Despite the dual factors of declining inflation and interest rate cuts inflating disposable incomes, consumer sentiment is still dampened. The Reserve Bank of Australia cut the cash rate by 0.25 basis points to 3.85% in May, aiming to rejuvenate consumer confidence after numerous rate hikes since 2022.
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Lien: A legal claim against a property that must be paid off when the property is sold.
