Australian retail sales rise sharply in January as consumers regain the confidence to shop after Covid 19 virus outbreak. This indicates that the economy continues to have good growth prospects this year.
According to the Australian Bureau of Statistics (ABS), retail sales rose 1.8% in January to A$325 billion ($23.3 billion).
Retail sales rose in January after falling 4.4% in December as consumers shifted to online shopping, which boosted spending.
Russia’s invasion of Ukraine and rising commodity prices have increased uncertainty about the development of retail sales. However, the impact on Australia remains to be seen.
“The trade relationship between Australia and Russia and Ukraine is disproportionate. We expect the overall economy to be safe, if Europe and the United States do not fight Russia in Ukraine or elsewhere,”said Gareth Aird, Head of Economics at the Commonwealth Bank of Australia (CBA)