Drop in local retail trade goes against national trend
4 July 2012
Figures released today by the Australian Bureau of Statistics (ABS) reveal a decrease in local retail trade, according to the State’s leading business membership organisation, Business SA.
Retail turnover in South Australia for May 2012 was 0.6 per cent lower (seasonally adjusted) than the previous month’s figures.
This compares to the national retail turnover which increased 0.5 per cent during the same month.
Business SA Chief Executive Officer, Nigel McBride, said that this latest fall in retail trade confirmed the challenges facing local businesses.
“South Australia’s retail trade went against the national trend and decreased in May, highlighting the pressure that remains on local retailers,” said Mr McBride.
“While this was our first decrease in retail trade since January, we were the only mainland state to see a decline in retail turnover for the month.
“This fall in retail sales comes on top of the 0.50 per cent interest rate cut by the Reserve Bank in May.
“The retail sector certainly remains under pressure and it appears the rate cut in May did not stimulate consumer spending.
“The Reserve Bank must closely monitor the widespread performance of the economy and ensure that sectors under pressure, including retail, receive some relief from ongoing pressures.
“We look forward to the impact of the June interest rate cut providing more positive figures in next month’s retail data.
“With the introduction of the carbon tax and wage increases, the costs of doing business will increase which will maintain the heat on the business community in the coming months.”