In a clear sign that the Federal Government’s $900 stimulus payments are still flooding into the economy, retail sales grew a further 1 percent in May, after a 0.3 percent increase in April and a 2.2 percent increase in March.
Modelling by Access Economics estimates the cash handouts contributed $758 million in retail sales in May. Spending at department stores rose 5.5 percent in May, while spending on clothing and soft goods advanced 2.9 percent.
Australian National Retail Association CEO Margy Osmond said without the stimulus packages the retail sector would be in a much poorer state. A sentiment echoed by Macquarie Group senior economist Brian Redican, who said the figures show consumers are more upbeat about the economy and are willing to spend rather than save their stimulus payments.
“It does really suggest that consumers have both got the money and the confidence to spend at the moment,” Redican said.
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