Breaking News
Investing Pro 0

Australia retail sales unexpectedly fall in October

Economic Indicators Nov 27, 2022 07:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

By Ambar Warrick Australian retail sales fell for the first time this year in October, data showed on Monday, as rising inflation and elevated interest rates now appeared to be taking a toll on consumer spending in most sectors.

Retail sales fell 0.2% in October from the prior month, preliminary data from the Australian Bureau of Statistics (ABS) showed. The data missed expectations for growth of 0.5% and came in well below September’s reading of 0.6%.

The reading is the first decline in retail sales since December 2021, and reflects the growing pressure on household spending from high inflation and interest rates. Australian consumer inflation surged to a 32-year high in the third quarter, while the Reserve Bank’s benchmark interest rate hit a nine-year high.

Retail spending on all industries except fresh food fell sharply in October, with department stores marking the biggest fall, the ABS said in a statement. Spending on restaurants and food delivery - a key source of spending this year - also fell for the first time since January.

“The October fall in retail turnover ends a run of nine straight monthly rises and suggests increased cost of living pressures including interest rate rises have started to weigh on consumer spending,” said Ben Dorber, ABS head of retail statistics.

The Australian dollar fell sharply after the reading, trading down 0.5% at 0.6715. Monday’s data shows that Australian economic growth is now set to cool after an initial post-COVID spike.

Consumer spending is a key driver of economic growth in the country, with a decline in the space likely indicating that the Reserve Bank was justified in slowing its pace of interest rate hikes.

The central bank raised rates by a relatively smaller 0.25% during its past two meetings, and signaled that it was trying to strike a balance between controlling inflation and curbing economic growth with high rates.

The Australian economy also faces potential headwinds from cooling growth in major export market China, as the country grapples with rising COVID-19 cases and civil unrest over its strict anti-COVID policy.

Australia retail sales unexpectedly fall in October

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email