Australian retail spending sank in October as consumers, weighed down by the continued cost of living crunch, held off spending to take advantage of the Black Friday Sales.
Fresh retail spending data for October, released by the Australian Bureau of Statistics on Tuesday, showed turnover sank 0.2 per cent, falling short of market expectations for an increase of 0.1 per cent.
The decline in spending was experienced across the retail sector with Australians purchasing less clothing, footwear, household goods, and at cafes, restaurants, bars and department stores.
Food retailing was the only sector to post a rise in October, up 0.5 per cent.
In total, consumers spent $57 million less in October compared to the month prior, according to the seasonally adjusted figures.
The figures follow an unexpected shopping spree in September as consumers delivered a one-off splurge on products including the new iPhone, and cost of living relief was rolled out.
ABS head of retail statistics Ben Dober said the retail data showed consumers had “hit the pause button” on some discretionary spending in October, as they waited for the Black Friday sales events in November.
“This is a pattern we have seen develop in recent years as Black Friday sales grow in popularity,” Mr Dober said.
Australian Retailers Association chief Paul Zahra said shoppers were increasingly feeling the crunch of the cost-of-living crisis and interest rate increases, making it a challenging time to be a discretionary retailer.
“October’s underwhelming results also came amid the Reserve Bank of Australia’s last interest rate pause,” Mr Zahra said.
“We expect retail sales will be impacted even more by November’s interest rate hike.”
