Small rise in retail trade as building approvals fall

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 October 2011 was 0.2 per cent higher (seasonally adjusted) than the previous month’s figures.

This compares to the national retail turnover which increased 0.2 per cent during the same month.

Business SA Chief Executive Officer, Peter Vaughan, said that the rise in retail trade was good news for retailers.

“South Australia’s retail trade increased in line with the national average which is a positive sign for the local economy,” said Mr Vaughan.

“While it was only a small rise, this is the fourth consecutive increase in local retail trade and we look forward to this trend continuing for the rest of the year.

“It has been a tough year for retailers and another interest rate cut when the Reserve Bank meets next week would build much needed momentum in the economy in the lead up to Christmas.

“The retail sector is a significant employer here in South Australia and it is essential that consumers have the confidence to spend throughout the festive season.”

Local building approval figures followed the national trend with a decrease in October 2011.

Data revealed that South Australian building approvals decreased by a seasonally adjusted 3.4 per cent in October. This was in line with the national trend which saw a decrease of 10.7 per cent.

Approvals for private housing in South Australia decreased by 0.3 per cent, while national figures also decreased 7.5 per cent.

“While South Australia mirrored the national decline in building approvals, our decreases were not to the extent of the national averages in October,” Mr Vaughan said.

“Local building approval data has been under pressure in recent months, and the national decline this month reflects the ongoing pressures being felt throughout the economy.

“Following last month’s interest rate cut, there is certainly room for another cut in rates before Christmas which will provide a boost to the building and construction sector.

“Many industries here in South Australia remain under pressure with both businesses and consumers being hit with rising costs which is restricting confidence throughout the economy.”