Australia & New Zealand Economics

Australia & New Zealand Economics Weekly

7 April, 2017

Has the weakening in retail spending got further to run?

The outright fall in retail sales values in February raises fresh concerns about the health of the retail sector. Admittedly, some of the recent weakness is due to temporary factors. But there are other factors holding back spending that are likely to persist, including the low income growth environment. As such, we expect retail sales growth will remain subdued for some time yet.

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