Retail sales up 1.2pc in June, smashing forecasts | Australian Markets

Australian retail turnover has smashed forecasts in June as buyers splurged on end-of-financial-year bargains and new product launches just like the highly-anticipated Nintendo Switch 2.

The 1.2 per cent surge in retail sales in June was effectively above market expectations for a 0.4 per cent gain and follows a small 0.5 per cent raise in May, in keeping with the the Australian Bureau of Statistics on Thursday.

June’s outcome was the largest month-to-month rise since November 2021, when easing COVID-19 lockdowns boosted spending.

KPMG chief economist Brendan Rynne mentioned the higher-than-anticipated increase in retail spending was largely on account of EOFY sale occasions, more purchases of winter clothes, in addition to new product releases just like the Nintendo Switch 2.

“As cost-of-living pressures continue, households are very much vying for bargains wherever they can, with sale items now consuming a far larger portion of our spending compared to just a few years ago,” he mentioned.

Oxford Economics Australia head of financial analysis and international trade Harry Murphy mentioned the leap in sales in June adopted a string of weak outcomes, suggesting the upside spending shock was an anomaly slightly than a revival of households’ fortunes.

He mentioned sales growth had averaged simply 0.4 per cent month-on-month this yr and after adjusting for population and inflation, spending fell 0.1 per cent in the second quarter.

“Just as the looked through the noise in monthly measures of consumer prices, the board will do the same for June’s higher-than-expected retail sales print,” he mentioned.

“It’s the trend that matters, and on that front, the trend of soft retail sales, labour market weakness and easing inflation make a perfect trifecta for an August rate cut.”

Retail turnover rose in all States and Territories during June. The strongest rises have been recorded in NSW and the ACT, each up 1.6 per cent, adopted by Victoria and Queensland, each up 1.2 per cent.

WA posted the smallest raise at simply 0.3 per cent.