Retail trade falls despite Easter and Anzac Day
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Australians are still not spending despite back-to-back public holidays in April, and it could force the Reserve Bank of Australia to come to the rescue with additional rate relief.
Retail sales fell by 0.1 per cent in April despite two holidays during the month, Australian Bureau of Statistics figures show.
This follows growth of 0.3 per cent in March 2025 and 0.2 per cent in February 2025.
Food-related spending was up, with cafes, restaurants and takeaway services growing 1.1 per cent to be the standout.
Oxford Economics Australia lead economist Ben Udy said the RBA might cut rates even sooner than expected.
'This weakness is one indication that households are being a little cautious in the face of rising global uncertainty,' he said.
'We still expect consumption to rise over the rest of the year, supported by the recovery in real household incomes and RBA rate cuts.
'But unless consumption picks up a little more strongly in the coming months, the RBA may cut rates even sooner than we currently expect.'
RBA governor Michele Bullock delivered further rate relief in May. Picture: NewsWire / Nikki Short
The RBA began its rate-cutting cycle in February, pausing on the cash rate in April before cutting again in May.
It has reduced the official cash rate from 4.35 per cent at the start of 2025 to 3.85 per cent after the second interest rate reduction.
ABS head of business statistics Robert Ewing said retail spending eased in April, particularly on clothing.
'Falls were partly offset by a bounce-back in Queensland as businesses recovered from the negative impacts of ex-Tropical Cyclone Alfred last month,' he said
'The rise in food-related spending was driven by more dining out in Queensland this month. The bounce back comes after adverse weather negatively impacted cafe and restaurant sales, Mr Ewing said.
Australians kept their hands in their pockets in April. Picture: NewsWire / Gaye Gerard
There were mixed results across the industries, with the largest falls in clothing, footwear and personal accessory retailing, down 2.5 per cent, while department stores also slumped 2.5 per cent.
This was partially offset by rises in other retailing up 0.7 per cent and household goods retailing which rose 0.6 per cent.
'Clothing retailers told us that the warmer-than-usual weather for an April month saw people holding off on buying clothing items, especially new winter season stock,' Mr Ewing said.
Retail turnover rose in Queensland by 1.4 per cent and Western Australia 0.4 per cent, with all other states and territories recording a fall since March.
'Queensland retailers recovered from last month's temporary business closures and fewer customers,' Mr Ewing said.
'In April, we saw higher spending in the industries most impacted by ex-Tropical Cyclone Alfred.
'More people dined out and made recovery purchases on household items like furniture and electrical goods.'
Originally published as Spending falls below estimates, as holidays fail to lift consumer spending
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