Shoppers shun spending as inflation bites

Despite expectations of a robust rise , shoppers shunned new spending last month as inflation and interest rates continue to bite.According to fresh data released by the Australian Bureau of Statistics on Tuesday, retail turnover slipped 0.4 per cent in March, well short of economists’ expectations of an 0.3 per cent increase.

Economists believe households have spent much of their pandemic-era savings buffers and are feeling stretched by still persistent inflation, particularly for labour-intensive services such as insurance, housing and education. Retail spending through March was far weaker than economists had predicted. Picture NCA NewsWire / Emma Brasier

With the recent run of retail data affected by shifting seasonal patterns and one-off spending hits, such as Taylor’s Swift’s sold-out Eras Tour, the fresh figures indicate that consumer activity may be much weaker than previously predicted.According to the fresh seasonally adjusted figures, shoppers spent a $151m less in March than the month prior, bringing total turnover to $35.7bn

Despite the reading, economists expect an uptick in consumer spending through 2024, as tax relief and easing inflation bolsters household budgets.In a book full of startling revelations, former Prime Minister Scott Morrison writes that Malcolm Turnbull advised him to go for the top job during the infamous ‘spill week’ of 2018.While it is expected the budget will remain in surplus, welfare recipients holding out for relief are set to be disappointed.

Interest Rates Retail Turnover Labour-Intensive Services Department Stores Tax Relief Australian Bureau Of Statistics Pandemic-Era Savings Buffers Inflation Bites Retail Data Newswire-Business One-Off Spending Hits Robust Rise Consumer Activity

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