Slight rise in retail spending and trade
5 October 2010
Figures released today by the Australian Bureau of Statistics (ABS) reveal a small increase in local retail trade and international trade, according to the State’s leading business membership organisation, Business SA.
Retail turnover in South Australia for August 2010 was 0.1 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 it was important to provide consumers with the confidence to spend.
“Local retail spending increased by the smallest of margins in August, confirming the low levels of business and consumer confidence,” said Mr Mahoney.
“These figures certainly do not justify any increase in interest rates in the immediate future.
“Retail trade has struggled in recent months and it is essential that businesses are able to build momentum towards the Christmas trading period.
“Consumers are not being encouraged to spend, business costs are rising and this is a concern for the local economy.”
International trade figures released today indicate an increase in exports for South Australia in August.
Nationally, the balance of goods and services for August was a surplus of $2.35 billion (seasonally adjusted), from a revised $1.74 billion surplus in July.
South Australian exports increased 4.8 per cent in August, while imports followed the national trend and decreased by 11.6 per cent.
“It was positive news for our local economy that local exports increased, despite the strong dollar and the national decline in exports,” Mr Mahoney said.
“Our local exports have gathered momentum in recent months and this is pleasing considering that many of our trade partners are still facing difficult times.
“China was South Australia’s largest trading partner for the month, both for exports and imports.
“The national decline in exports confirms the challenges being faced and exports will suffer if the Reserve Bank increases interest rates before Christmas.”
