The Australian Bureau of Statistics has documented the fact that September retail product sales in Australia increased 0.4 percent to $20.9 billion from $20.8 billion in August. This was the third straight month of benefits after sales grew 0.6 percent in August and 0.8 percent in July, giving some hope to Retail Jobs In Perth and WA if the trend continues, especially if consumers which have started opening their purses keep them open.
Australian buyers have been holding back on investing for a time, after previous year’s interest rate hikes bought the country’s official cash rate to 4.75%.
Food selling is really a positive story, making up 40% of retail income as well as being a driver of retail jobs in Perth and WA. Woolworths recently announced the opening of new stores across Australia, including in WA.
The Reserve Bank of Australia, which has repeatedly cited the timidity of the Australian consumer in its recent announcements, has also been preoccupied with containing the potential for rising inflation related to the country’s current mining-investment boom.
The disparity from the much softer purchaser and fast-growing mining-related areas of the economy has led some to describe Australia as a “two-speed’ economy.
Although one data point is unlikely to have an outsized impact on interest-rate expectations, some observers believe that the recent run of mixed domestic data is building a case for the RBA to modestly trim rates by the end of the year.
The ABS found household goods sales and restaurant and take-away food sales drove the high retail figures in September. Perth Retail Jobs and WA were also helped by higher than expected consumer confidence and credit growth reports, which saw sales rebound from the weaker numbers reported in three out of four months in early 2011.
However not all retail sectors reported growth. Shopping centers and outfits shops reported less strong performance, with some attributing the weakness to on-line rivalry.
The Reserve Bank of Australia recently cut its benchmark interest rate 25 basis points to 4.5 percent, in light of a mining boom that is expected to generate $200 billion in annual investment. With the interest rate cut, experts predict retailers should experience a boost, given that the 90 percent of Australian mortgages set at a variable rate means many consumers will have more money to spend.