Rates contribute to fall in local retail spending

10 January 2011

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 November 2010 was 0.9 per cent lower (seasonally adjusted) than the previous month’s figures.

This compares to the national retail turnover which had a 0.3 per cent increase during the same month.

Business SA Chief Executive Officer, Peter Vaughan, said that the data was a concern, particularly in the lead-up to Christmas.

“The November interest rate rise could not have come at a worse time and it clearly dampened consumer confidence,” said Mr Vaughan.

“South Australia had the largest fall in retail trade in November and our unemployment rate remains the highest in the nation.

“The business community was looking forward to building some momentum towards the Christmas trading period, however the rate rise left spending money in the pockets of consumers.

“Unfortunately local businesses were unable to capitalise on post Christmas sales or create further employment opportunities, with the State shutting up shop over the Christmas period.

“Local business confidence has been down and interest rates must remain on hold well into the year.”