Australian consumers were on a shopping binge last year due to solid wealth effects from strong growth in employment, property prices and growth in average wage in real terms. This particularly took place in the second half of 2015 when private consumption expanded at an annualized rate of 3.4%. However, under the current scenario, that is not a sustainable pace, noted Societe Generale in a research report. Therefore, a weaker growth rate in retail sales is expected to have been carried over from the first quarter of this year into the second quarter, added Societe Generale.
Apparel sales have been quite strong in the Austral summer and are likely to reverse some of the gains in April. Consumer goods sales are also not expected to sustain the growth rate of 8.1% recorded in 2015. Meanwhile, there is certain scope for food outlets sales to have bolstered after weakening in Q4 2015 and Q1 2016.
