Retail sales in Australia look to have continued their slump in the quarter that ended in June, but the signs are good that conditions will improve by the September quarter, according to the AFGC-CHEP Retail Index.
The AFGC-CHEP index tracks pallet movements through CHEP's nationwide network to extrapolate on wider economic trends, and this tenth edition of the index indicates that year-on-year growth in retail sales is soft, and that a gradual pick-up in growth is expected.
The index was 2.6 per cent higher in the June quarter 2013 than the June quarter 2012. However, growth is expected to edge upwards to 2.8 per cent over the 12 months to the September quarter 2013.
According to the AFGC-CHEP Retail Index, this analysis is broadly consistent with ABS Retail Trade trend data which shows that year-on-year growth in nominal retail trade was 2.6 per cent over the year to May 2013.
Australian Food & Grocery Council (AFGC) chief executive, Gary Dawson, said national politics could play a large role in improving consumer sales.
"The retail environment remains challenging, reflecting subdued consumer confidence,” he said.
“Indications of growth improving later in the year once the federal election is out of the way are encouraging and would see improved consumer spending supporting retail sales growth.”
According to recent ABS statistics, food and grocery retail growth has improved year-on-year compared with overall retail sales growth. Results published by the ABS for the month of May show food and grocery retail sales grew by 4.2 per cent over the past year.
The AFGC CHEP Retail Index shows that year-on-year growth in retail sales is soft, and that a gradual pick-up in growth is expected.
