Retail sale volumes have fallen to their worst annual performance since the 1990-91 recession.Credit:Dominic Lorrimer
Analysts,the government and the Reserve Bank of Australia have been expecting a strong response to recent interest rate cuts,worth about $3 billion a month in extra household disposable income,and the rollout of$7.2 billion of tax cuts directed at low- and middle-income earners.
Instead,retail sales have flatlined,with the volume of sales falling 0.1 per cent in the September quarter. Volumes have now dropped 0.2 per cent over the past 12 months,the worst annual result since Australia's last recession.
In the nation's biggest retail market of NSW,sales are now growing at a slower rate than the overall population.
Loading
Sales through the state's specialised food retailers such as bakers and butchers have dropped more than 7 per cent over the past year. Cafes and restaurants have also faced a downturn in trade while consumers have sliced liquor purchases.
There are some signs that shoppers are responding in areas connected to the housing sector following therecent increase in property prices. Sales of household goods improved 0.9 per cent in the quarter,the second consecutive quarterly improvement.
Across Victoria,the value of clothing and footwear sales have grown 5.6 per cent over the past year.