SYDNEY- Australian retail sales posted a small gain in January after a strong showing in the last quarter as consumer spending continued to pick up amid a slowdown in inflation and large cuts to income taxes.
Other data showed net exports unexpectedly added to economic growth in the fourth quarter, matching contribution from government spending, suggesting some upside surprise to the economic momentum as 2024 drew to a close.
Retail sales rose 0.3 percent in January from December, when they fell 0.1 percent, Australian Bureau of Statistics (ABS) data showed on Tuesday. The outcome was in line with analysts’ forecasts.
Sales were up 3.8 percent on a year earlier at A$37.1 billion ($23.1 billion), with the ABS noting the rise was driven by food-related spending, rather than on discretionary items.
“Bumper crowds across large-scale events, including record attendance at the Australian Tennis Open and cricket events, lifted spending in catering services,” said Robert Ewing, head of business statistics at the ABS.
The outlook for sales has been helped by the first interest rate cut in over four years, which lowered mortgage payments and lifted consumer sentiment. Consumers have also benefited from a slowdown in inflation and the large cuts to income taxes.
