Retail trade figures for April show a slight increase, but still flat

The latest retail trade figures have revealed that many Australians are keeping a close eye on their spending in the retail sector.

Retail trade figures were slightly up in April, but spending was still flat for the year, as Australians continued to keep an eye on what they spend.

According to fresh data released by the Australian Bureau of Statistics on Tuesday, retail spending in April rose 0.1 per cent from March.

This followed a 0.4 per cent fall in March 2024 and a 0.2 per cent rise in February 2024.

“Underlying retail spending continues to be weak with a small rise in turnover in April not enough to make up for a fall in March,” Ben Dorber, ABS head of retail statistics, said.

“Since the start of 2024, trend retail turnover has been flat as cautious consumers reduce their discretionary spending.”

Australians are still restricting their spending on retail. Picture NCA Newswire/ Gaye Gerard

Sean Langcake, head of Macroeconomic Forecasting for Oxford Economics Australia, described the rise as meagre, saying retail sales have been broadly unchanged over the past seven months.

Clothing sales were particularly weak, falling 0.7 per cent in the month.

Food sales also fell back after a strong March, which was inflated thanks to an earlier-than-usual Easter.

“Consumers have reigned in their spending in response to a host of cost-of-living pressures, causing retail sales growth to grind to a halt over much of the past year,” Mr Langcake said.

“There is some help on the way for household finances from the May budget, with tax cuts and subsidy payments set to boost cashflow from July.

“But this is unlikely to be enough to completely shake consumers out of their current funk. “We expect momentum in retails sales will remain subdued over 2024.”