By James Glynn
SYDNEY–Australian retail sales were stronger-than-expected in May as consumers rushed to take advantage of discounts and promotions heading into the end of the financial year.
Retail turnover rose 0.7% in May from April, the Australian Bureau of Statistics said Thursday. The rise, which beat market expectations for a 0.1% increase, follows a flat result in April, and a 0.4% rise in March.
Sales were supported by higher spending on food and eating out, combined with a boost in spending on discretionary goods, the ABS said.
“This latest rise reflected some resilience in spending with consumers taking advantage of larger than usual promotional activity and sales events for May,” the ABS said.
The strength in sales comes despite depressed consumer sentiment and signs that a surge in interest rates over the last year is putting extreme pressure on household budgets.
The Reserve Bank of Australia’s next policy meeting on Tuesday is expected to see official interest rates increase further with the central bank still concerned about stubborn inflation risks and the potential for wages growth to accelerate over the coming months.
Write to James Glynn at [email protected]
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