Retail sales posted a surprise fall in July as the effects of the Federal Government’s stimulus wore off.
ABS figures have revealed retail sales fell one percent in July to $19.6 billion from $19.8 billion.
According to IG Markets market analyst Cameron Peacock, consumers are becoming very budget conscious and are reining in their spending, conscious that the Government will start phasing out stimulus measures.
With interest rates also predicted to jump up at the end of the year, consumers are holding on to their money.
Peacock said the predicted rate rises in November and December could see RBA Governor Glenn Stevens labelled as the “Grinch that stole Christmas.”
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