April retail sales bounce back slightly

Retail sales in Australia rose by a seasonally-adjusted 0.6 per cent in April, according figures released today by the Australian Bureau of Statistics.

Sales continued their positive momentum, rising a seasonally-adjusted 0.6%, against a forecast of 0.3%, following a revised 0.8% rise in March.

Sales rose, in seasonally adjusted terms, across three retail industry groups, with household goods retailing up 2.6%, food retailing up 1.3% and clothing, footwear and other personal accessory retailing up 0.3%.

Sales fell in department stores by 2.4% per cent, other retailing dropped 0.7%, while cafes, restaurants and takeaway food services also fell 0.7%.

"Dismal" figures says ARA

The Australian Retailers Association said today’s “dismal” figures showed consumers were starting to “cocoon” in their homes and was a direct indication the RBA needs to take a steady hand to interest rates.

ARA executive director Russell Zimmerman said April sales have seen consumers pull back again in areas of retail where they were slowly starting to relax.

“This is a clear sign that the bombardment of interest rate rises since October are taking their toll on homeowners’ discretionary spend,” he said.

“April 2010 retail sales are only up 1.8% compared to the same time last year. This is appalling growth and well below the current rate of inflation,” Zimmerman said. 

South Australia recorded the largest rise in sales in April, up 2.9% seasonally adjusted, followed by Victoria with an increase of 1.5%. Queensland and the Northern Territory were both up 1.2% while Tasmania was up just 0.5%.

Sales fell in New South Wales by 0.8%, in the Australian Capital Territory by 0.3% and in Western Australia by 0.1%.