Retail trade figures stagnant and disaster for South Australian exporters - 4 Nov

4 November 2010

Figures released today by the Australian Bureau of Statistics (ABS) reveal miniscule growth in local retail trade while local exports fell sharply, according to the State’s leading business membership organisation, Business SA.

Retail turnover in South Australia for September 2010 was 0.2 per cent higher (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 Acting Chief Executive Officer, Brett Mahoney, said that the data revealed more bad news for the local economy.

“While clothing and household retailing rose slightly at 1.8 and 1.6 per cent, food, department stores and other retail all recorded a decrease.

“This data again proves the fragile nature of our economy prior to any interest rate rise. The decision to raise interest rates this week will equal disaster for retail sales leading into Christmas.

“Consumer confidence is low, as further indicated by the dive in retail stocks on the ASX post the interest rate rise this week.

“And while our Eastern States counterparts will drive consumer confidence with post Christmas sales, generating employment and enticing tourists, yet again South Australian will be relegated to a quiet and long economic slumber with a three and possibly four day retail shutdown”

International trade figures released today indicate a sharp drop in exports for South Australia in September

“South Australian exports fell by a staggering 22 per cent in September, compared to a 2 per cent decrease nationally.

“The high Australian dollar is making exporters less competitive and this week’s interest rate rise will mean additional upward pressure on our dollar.

“Today’s data indicates local exporters are hurting and the unwarranted November RBA interest rate rise is sure to have a further negative impact”

For more information, please contact: Manager Marketing and Communications Belinda Connor (08) 8300 0275.