Australian retail sales will perk up after a 20-year low next fiscal year thanks to a resources boom that will lift wages and boost consumer spending, according to a Deloitte Access Economics report.
Retail sales will advance 1.3 per cent in the 12 months ending June 30, the worst fiscal-year result in two decades, the Canberra-based research company said in a report today (June 8). But sales will gain 2.2 per cent in 2011-12 and 3.3 per cent in 2012-13, it said.
“`Australia's` economic strength will help support a robust rate of jobs growth,” said David Rumbens, a Deloitte Access Economics partner. “Dividends from the resources boom may be difficult to separately identify for most retailers, but they will be supporting a range of broad economic indicators, such as jobs, wage growth, profits and government revenues.”
Australian retail sales surged in April by the most in 17 months as the economy recovered from its worst quarterly contraction in two decades, according to a Bloomberg report. Woolworths, the nation’s biggest retailer, said in April that third-quarter sales rose 5.1 per cent on higher demand at its supermarkets.
“Retail sales are weak at present, but it’s not all necessarily bad news looking forward,” Mr Rumbens said. “Australia is, after all, in the midst of an unprecedented resources boom.”
