Yesterday’s national accounts data for the December quarter showed that that household spending rose by 4.3% in the December quarter, with household consumption accounting for 2.3% of the nation’s 3.1% growth in GDP.
The economy’s rebound from the COVID-induced recession is proving to be a boon for listed retailers, with many enjoying strong growth in sales and their share prices.
Dermot Ryan of AMP Capital says factors such as the federal government’s stimulus program and Australia’s relatively low COVID-19 case numbers have been a major driver of the economic recovery and the retailer sector’s rebound. Moreover, retailers are expected to benefit further from the vaccine rollout and continued restrictions on international travel.
