Australia’s Retail Sales Unexpectedly Drop 0.1% in April

Australia Retail Sales Fall 0.1% in April, Below Market Forecast

Australia's latest economic data revealed a surprise contraction in retail sales for April 2025, underscoring potential softness in consumer demand. The Australian Bureau of Statistics (ABS) reported that retail turnover fell 0.1% month-over-month (MoM), against expectations of a 0.3% increase.

Decline Follows March Growth

In contrast, March 2025 saw a 0.3% gain, suggesting the April drop may reflect the ongoing impact of cost-of-living pressures, high interest rates, and cautious household spending.

The ABS noted the biggest declines came from department stores and household goods, while food retailing remained stable.

“Retail turnover fell modestly in April due to weaker discretionary spending,” said an ABS spokesperson.

Quick Data Overview

IndicatorApril 2025March 2025ForecastRetail Sales (MoM)-0.1%+0.3%+0.3%

Market Reaction and Implications

The Australian Dollar (AUD) saw limited immediate reaction but may remain under pressure if weak consumer activity persists. This data could also influence the Reserve Bank of Australia (RBA)'s outlook, especially if inflation trends lower in coming months.

Why It Matters

Retail sales are a key indicator of household spending, which makes up a large share of Australia’s GDP. A continued decline may signal weaker overall economic momentum and shift monetary policy expectations.

For more updates on Australia's economy, visit Tredu.com Economic Calendar