According to the Australian Bureau of Statistics, real retail sales in the fourth quarter increased by 0.3%, surpassing market expectations of a 0.1% gain. However, quarterly retail turnover barely rose to a seasonally adjusted value of A$98.30 billion, just above the three-year low of A$97.97 billion recorded in the previous quarter. This figure also represented a 1% decrease compared to the December quarter in 2022.
The final monthly reading for December showed a significant month-on-month decrease of 2.7% in retail sales, which was much worse than the anticipated 0.1% increase. This sharp reversal followed a 1.6% rise observed in November, primarily driven by the Black Friday event. November's increase stood out as an exception in an otherwise subdued year for retail spending.
Ben Dorber, the head of retail statistics at the ABS, noted that sales volumes per person have declined every quarter since reaching a peak in June 2022. However, they remain above pre-pandemic levels. The price index for retail sales rose by 0.1% in the quarter, the slowest growth rate since the third quarter of 2021.
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