Spending falls below estimates, as holidays fail | Australian Markets

Australians are nonetheless not spending regardless of back-to-back public holidays in April, and it may pressure the Reserve Bank of Australia to come back to the rescue with further charge aid.

Retail gross sales fell by 0.1 per cent in April regardless of two holidays during the month, Australian Bureau of Statistics figures show.

This follows growth of 0.3 per cent in March 2025 and 0.2 per cent in February 2025.

Food-related spending was up, with cafes, eating places and takeaway providers growing 1.1 per cent to be the standout.

Oxford Economics Australia lead economist Ben Udy stated the RBA may cut charges even sooner than anticipated.

“This weakness is one indication that households are being a little cautious in the face of rising global uncertainty,” he stated.

“We still expect consumption to rise over the rest of the year, supported by the recovery in real household incomes and RBA rate cuts.

“But unless consumption picks up a little more strongly in the coming months, the RBA may cut rates even sooner than we currently expect.”

The RBA started its rate-cutting cycle in February, pausing on the money charge in April earlier than slicing again in May.

It has diminished the official money charge from 4.35 per cent initially of 2025 to three.85 per cent after the second rate of interest discount.

ABS head of business statistics Robert Ewing stated retail spending eased in April, significantly on clothes.

“Falls were partly offset by a bounce-back in Queensland as businesses recovered from the negative impacts of ex-Tropical Cyclone Alfred last month,” he stated

“The rise in food-related spending was driven by more dining out in Queensland this month. The bounce back comes after adverse weather negatively impacted cafe and restaurant sales, Mr Ewing said.

There were mixed results across the industries, with the largest falls in clothing, footwear and personal accessory retailing, down 2.5 per cent, while department stores also slumped 2.5 per cent.

This was partially offset by rises in other retailing up 0.7 per cent and household goods retailing which rose 0.6 per cent.

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“Clothing retailers told us that the warmer-than-usual weather for an April month saw people holding off on buying clothing items, especially new winter season stock,” Mr Ewing stated.

Retail turnover rose in Queensland by 1.4 per cent and Western Australia 0.4 per cent, with all different states and territories recording a fall since March.

“Queensland retailers recovered from last month’s temporary business closures and fewer customers,” Mr Ewing stated.

“In April, we saw higher spending in the industries most impacted by ex-Tropical Cyclone Alfred.

“More people dined out and made recovery purchases on household items like furniture and electrical goods.”