The Australian Bureau of Statistics (ABS) released new data on April 30, revealing an unexpected decline in Australian retail sales for March 2024. The drop comes as consumers tighten their spending amidst mounting living expenses. Additionally, year-on-year retail sales growth has decelerated to its slowest pace in over two years.
According to the ABS report, Australian retail sales experienced a 0.4% month-on-month decrease in March, marking a reversal from the adjusted 0.2% expansion witnessed in February. This downturn starkly contrasts with analysts’ expectations of a 0.2% increase in March.
The total value of Australian retail sales for March amounted to A$35.66 billion ($23.37 billion), representing a mere 0.8% growth compared to the same period last year. This growth rate is notably the lowest recorded since August 2021.
The unexpected decline in retail sales underscores the challenges faced by Australian consumers amid economic uncertainties and rising living costs. Analysts anticipate continued scrutiny of consumer spending patterns in the coming months to assess the impact on broader economic trends.