Retail trade benefits from busy March
5 May 2011
Figures released today by the Australian Bureau of Statistics (ABS) reveal a rise in local retail trade and a decrease in building approvals, according to the State’s leading business membership organisation, Business SA.
Retail turnover in South Australia for March 2011 was 0.3 per cent higher (seasonally adjusted) than the previous month’s figures.
This compares to the national retail turnover which decreased 0.5 per cent during the same month.
Business SA Chief Executive Officer, Peter Vaughan, said that the busy month of March had provided a much needed boost to retailers.
“It was pleasing that retail trade increased in March, particularly given that low consumer confidence has maintained pressure on local retailers,” said Mr Vaughan.
“The increased economic activity generated throughout March in South Australia saw unemployment decrease and now a rise in retail trade data.
“National retail trade declined for the first time in six months, confirming the Reserve Bank made the right decision in leaving interest rates on hold.
“Growth in retail sales remains weak and it is important that local businesses across the State are able to build momentum.”
Local building approval figures went against the national trend with a decrease in March 2011.
Data revealed that South Australian building approvals decreased by a seasonally adjusted 22.5 per cent in March. This was in contrast with the national trend which saw an increase of 9.1 per cent.
Approvals for private housing in South Australia decreased by 2.1 per cent, while national figures also decreased 0.8 per cent.
“South Australia went against the national trend with a significant decrease in building approvals in March,” Mr Vaughan said.
“The South Australian building approval data continues to be very volatile and this month’s decrease follows a significant increase in the previous month.
“Building confidence is heavily dependent on interest rates and with private housing falling in nine of the past 12 months in South Australia and nationally there should be no rate rises in the coming months.
“The local construction industry is likely to feel the pressure in the coming months, particularly given the demand for skilled labour in other States around Australia following the natural disasters.”
