Everyone expected December's latest figures from the Australian Bureau of Statistics would be down because we had impressive numbers from November. There was a 7.7% increase from Nov-2021 to Nov-2022. This then was unexpected. So many expected much of that growth in November to be early December sales. So they said the consumers had moved forward with their purchases to take advantage of the big Black Friday sales. Everyone accepts that these Black Friday sales were huge. But, the latest retail figures have defied expectations and showed a significant 7.5% increase from Dec-2021 to Dec-2022. So that is not it.
While these numbers are cause for celebration, there is a different story to be told. According to the seasonally adjusted figures, Australian retail turnover fell 3.9% in December 2022. This discrepancy will have economists scratching their heads and debating the reasons behind the drop.
Despite this recent dip, it's important to note that the ABS table shows 11 months of retail growth and only one drop. This is a remarkable accomplishment for the year.
Still, we can say that the Australian retail sector has been resilient. It has adapted to the challenges brought on by the pandemic and continues to grow.
I would like to hear about this and our inflation rate of about 7%. I bet I will not.
In conclusion, the latest figures may be mixed, but they still paint a good picture of the Australian retail sector. We have had 11 months of growth in retail and only one drop in December.
Here is the link, it is just out, and make your mind up.
Update
The economists think it is one of those bitter, sweet situations. All they looked at was the seasonally adjusted figure for December, so what they saw was the most significant decline in Australia since August 2020. Also, they noted that Australian inflation is now at a nearly 33-year high in the December quarter, by increasing to a rate of 7.8 per cent. I think we can expect another interest rate increase.
