The ABS has released preliminary retail sales for February, which recorded a 0.4% rebound over the month, but a moderation in annual retail sales growth to just 1.7% year-on-year:
The seasonally adjusted estimate rose 0.4% in February 2020. This result follows falls in both December 2019 and January 2020.
In seasonally adjusted terms, Australian turnover rose 1.7% in February 2020 compared with February 2019.
The rise in seasonally adjusted terms in February 2020 was largely driven by the Food Retailing sub industry with Supermarkets recording increases in demand.
Offsetting weakness was seen in the Clothing, footwear and personal accessory retailing sub industry where businesses reported adverse impacts from COVID-19.
Weakness was also seen in Other retailing including duty free stores and luxury goods retailing where businesses that are heavily reliant on overseas visitors reported impacts from COVID-19.
Other than Supermarkets, retailers with no specific links to tourism were largely unaffected in February 2020.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
