Australia retail sales grow slightly less than expected in March on cyclone impact

Published 02/05/2025, 02:50
© Reuters.

Investing.com-- Australian retail sales grew a touch below expectations in March as Tropical cyclone Alfred disrupted business activity in some parts of the country, although growth in sales still picked up from the prior month. 

Retail sales grew 0.3% month-on-month in March, data from the Australian Bureau of Statistics showed on Friday. The reading was just below expectations for an increase of 0.4%, but picked up from the 0.2% rise in the previous month. 

Retail sales in all states and territories grew in March, except for Queensland, which was the worst hit by Cyclone Alfred, the ABS data showed. 

But this trend was somewhat offset by increased spending on food and other essentials, amid stockpiling in anticipation of adverse weather conditions. 

Friday’s data also showed Australian retail sales were largely flat in the first quarter of 2025, snapping two consecutive quarters of growth as heightened uncertainty over the economy, amid a U.S.-China trade war, stymied spending. 

But on the other hand, retail sentiment was encouraged in Q1 by an interest rate cut from the Reserve Bank of Australia. 

Data released earlier this week showed Australian consumer price index inflation grew more than expected in Q1, although it did ease from the prior quarter. Softer inflation also helped boost consumer spending, as prices fell further from their post-COVID peaks. 

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