Retail trade in the NT increases in January, as economy grows for second quarter in a row

TERRITORIANS are on a spending bonanza, splashing $310m on everything from dining out to recreational goods as retail trade surged again

TERRITORIANS are on a spending bonanza, splashing $310m on everything from dining out to recreational goods as retail trade surged for the third month in a row.

It comes as the Northern Territory’s economy, as measured by state final demand, grew for the second straight quarter and outperformed all other jurisdictions in the country.

Economist Saul Eslake said the Territory’s “best of the rest” economic figures appeared to be driven by a “strong recovery” in household spending and a “very strong pick up” in business investment particularly in machinery and equipment.

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The NT’s economy had, until recently, gone backward nearly 11 quarters in a row, bar the quarter in December 2019 when the economy took a snap inhale and grew by 0.6 per cent.

But state final demand in the Territory grew by 6.8 per cent in the September quarter and backed it in with a 4.1 per cent increase in the December quarter.

The latest quarterly growth is the strongest the Territory has seen since March 2017.

Mr Eslake said while state final demand is not “conclusive proof” of the Territory being out of recession, other data including house prices and employment figures show the NT is “almost certainly” on its way out of its economic hole.

But the NT still had a “long way to go” he said, considering how much the economy had shrunk post-INPEX.

In retail trade, spending by Territorians increase 0.6 per cent in January, slightly above the national average of 0.5 per cent.

A major benefactor was the hospitality sector, which has experienced nine straight months of growth.

Hospitality NT Alex Bruce, who last year predicted a surge in spending in July would taper off in the following months, said the new figures meant he has had to eat his words.

Territorians spent $34.3m on cafes, restaurants, and takeaway food services in July. In January 2021 this had grown to $44.3m.

Mr Bruce said the increase in trade could be attributed to Territorians opting to remain home amid anxiety about rolling border closures.

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“Adelaide having its sharp lockdown over a pizza box put everyone in two minds about leaving the Territory,” he said.

“(And) everyone was vindicated by the rolling closures around Christmas time.”

Chief Minister Michael Gunner. Picture Katrina Bridgeford.

Hospitality NT chief executive Alex Bruce. Picture: Supplied.

Chief Minister Michael Gunner said the new retail and state final demand data underlined that the Territory “is Australia’s comeback capital”.

“Our economy is performing remarkably well,” he said.

“We’re determined to see this continue and that’s why we are treating the economy situation with the same urgency we treated the health crisis.

“We are slashing red-tape and approval times and we are focused on exploiting the Territory’s strengths and growing our new and established in industries.”