Fall in retail spending as local exports pick up - 2 Dec
Figures released today by the Australian Bureau of Statistics (ABS) reveal a decrease in local retail trade and a rise in exports, according to the State’s leading business membership organisation, Business SA.
Retail turnover in South Australia for October 2010 was 0.2 per cent lower (seasonally adjusted) than the previous month’s figures.
This compares to the national retail turnover which had a 1.1 per cent decrease during the same month.
Business SA Chief Executive Officer, Peter Vaughan, said that consumers were lacking the confidence to spend.
“The drop in retail spending confirms the low levels of business and consumer confidence which is a concern in the lead up to Christmas,” said Mr Vaughan.
“These figures certainly do not justify the increase in interest rates that we saw in November.
“The business community was looking forward to building some momentum towards the Christmas trading period, however the recent rate rise will continue to deter spending in the coming weeks.
“Unlike our interstate counterparts, there will be little opportunity for local businesses to capitalise on post Christmas sales, with the State shutting up shop for three, possibly four, days straight over the Christmas period.”
International trade figures released today indicate an increase in exports for South Australia in October.
Nationally, the balance of goods and services for October was a surplus of $2.63 billion (seasonally adjusted), from a revised $1.81 billion surplus in September.
South Australian exports increased 38.3 per cent in October, while imports also followed the national trend and decreased by 0.6 per cent.
“While it was positive news for our local economy that local exports increased significantly, it could be seen as somewhat of an adjustment following the large decline in the previous month,” Mr Vaughan said.
“It is pleasing that our local exports bounced back this month considering the strong dollar and the fact that many of our trade partners are still facing difficult times.
“China was again South Australia’s largest trading partner for the month, both for exports and imports.
“The volatile nature of these trade figures confirms the challenges being faced and exports will suffer if the Reserve Bank increases interest rates in the coming months.”
