Economic IndicatorsTop News

Australians Come Out of Lockdown And Spend Like Never Before

imageForex9 hours ago (Jun 18, 2020 10:54PM ET)

(C) Reuters. Australians Come Out of Lockdown And Spend Like Never Before

(Bloomberg) — Australians took to the shops in May as the initial easing of the Covid-19 lockdown, combined with stimulus cash flowing into bank accounts, fueled record monthly sales.

Preliminary retail figures showed turnover rose 16.3% from April, the Australian Bureau of Statistics said Friday in Sydney. Following a record 17.7% slump in April, May’s increase was the largest in 38 years of published surveys, with gains in every industry, the bureau said.

“There were large rises for clothing, footwear and personal accessory retailing and cafes, restaurants and takeaway food services, as restrictions on trade were lifted during May,” the bureau said.

Australian household bank balances surged during the lockdown from the transfer of government payments and a pullback in spending in April. The surge in spending in May corresponds with the rapid recovery of consumer confidence as the infection curve flattened, which allowed a staged reopening of the economy earlier than expected.

What Bloomberg’s Economist Say

“As lockdowns have eased, retail spending has rebounded strongly. Sales have more than exceeded prior trends, but this signals a shift — rather than a recovery — in household spending. In addition to stimulus support and pent up demand from the lockdown, elevated retail spending reflects a diversion from non-retail activities that remain shut down, and the retention of spending inside Australia that Australians would ordinarily make during offshore travels.”

James McIntyre, economist

Lockdowns and restrictions continue to skew food and beverage sales toward home consumption.

“Food retailing rose as households continued to consume additional food and beverages at home during May,” the statistics bureau said. “Levels in liquor retailing remain high, as restrictions on hospitality, such as bars, clubs and events, remained in place for May.”

Final retail sales data for May are due out July 3.

(C)2020 Bloomberg L.P.

Australians Come Out of Lockdown And Spend Like Never Before

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!