It is great to see a glimmer of positive in the retail sector. The latest Australian Bureau of Statistics (ABS) Retail Trade figures (6 March 2014) show that Australian retail turnover rose 1.2% in January 2014, seasonally adjusted, following a rise of 0.7% in December 2013.
Turnover rose in cafes, restaurants and takeaway food services (2.0%), other retailing (1.9%), household goods retailing (1.5%), department stores (2.6 %), food retailing (0.4%) and clothing, footwear and personal accessory retailing (1.1%). Over the longer term, in dollar movements, food retailing is the strongest contributor to growth (up 0.8% in trend terms).
Turnover rose in Queensland by 1.2 %. Through the year, Australian retail turnover rose 6.2% in January 2014, seasonally adjusted, compared to January 2013.
The trend estimate for Australian retail turnover rose 0.7% in January 2014. This follows a 0.7% rise in December 2013. Through the year, the trend estimate rose 5.6% in January 2014 compared to January 2013.
These are good statistics as we have been so reliant on the mining sector for all our good news. I’m not telling you anything new when I say retail has really struggled since the GFC which is not surprising as retail has a large reliance tied to discretionary spending – that is surplus income above what a person needs to spend to meet day to day necessities.
Who doesn’t like new cloths and the opportunity to take the family out for a night at the favourite restaurant?
The fact that food growth is the stongest contributor is encouraging and indicates people are feeling a bit more confident about the future.
To me, the main concern going forward is unemployment. If this can be kept in check hopefully we will see further increase in consumer confidence.
Balanix Solutions – Accountant, Business Advisor, Bookkeeping.
Situated in Strathpine on Brisbane North, we partner with our clients to assist them in their accounting, business management and bookkeeping needs. Our clients vary in industries from professional services (such as law, vet and dentist) to the trades (mechanic, bricklaying, plasterer etc), hospitality and retail. Are clients are located in the Pine Rivers area (including Brendale, Lawnton, Albany Creek and Eatons Hill) through to Kallangur, Petrie, North Lakes and Caboolture, as well as Brisbane South, the Gold Coast and various other parts of Queensland.
Call us today … we can help (07 3264 4783)