Australians have enjoyed an unusually warm autumn, but this unexpected weather has impacted retail spending, as highlighted by the latest data from the Australian Bureau of Statistics (ABS). According to the report, consumer expenditure decreased in April compared to March, in part due to the warm conditions discouraging shoppers from purchasing winter clothing.
ABS business statistics head Robert Ewing noted that the mild weather led to a significant pullback in clothing purchases, as consumers deferred buying new seasonal stock. Australia recently experienced its hottest March on record, with April temperatures also above the long-term average. Overall, retail spending fell by 0.1 per cent in April, despite the potential boost from the Easter and Anzac Day long weekends. Clothing and footwear sales were particularly hard hit, with a notable decline of 2.5 per cent for the month.
However, Queensland demonstrated a marked recovery in spending following the disruptions caused by Cyclone Alfred. Ewing remarked that local retailers rebounded from previous month’s temporary closures, resulting in increased consumer spending on dining and household goods such as furniture and electrical items.
The ABS also presented new insights concerning housing approvals, which have dropped to their lowest levels since August of last year, failing to meet the federal government’s targets for 2029. Current approvals are running at about 187,000 per annum—an 18 per cent increase from the low point in 2023 but still significantly below the 2021 peak. AMP economist My Bui emphasised that improving housing approvals and completions necessitates a greater focus on multi-unit developments instead of solely detached houses.
In April, only 35 per cent of building approvals were for units, a decline from previous levels where units constituted nearly half of all approvals at their peak. With Australia grappling with a chronic undersupply of housing, there is a pressing need to build approximately 240,000 dwelling units annually to align with targets set in the national housing accord. Given current trends, the feasibility of meeting these goals has become increasingly uncertain.
In summary, while Australians have enjoyed pleasant autumn weather, the retail sector has felt the effects, particularly in clothing sales, and challenges in housing approvals persist, complicating future planning for adequate housing supply.