NATIONAL: The Australian Retailers Association (ARA) has attributed an increase in December 2008 retail turnover to the Government's economic stimulus package.
ARA executive director Richard Evans confirmed the seasonally adjusted retail trade growth for December 08 (NSW 4.9 per cent, Victoria 3.9 per cent, Queensland 3.2 per cent, South Australia 2.4 per cent, WA 2.8 per cent, Tasmania 4.2 per cent, NT 4.8 per cent and ACT 3.0 per cent) showed signs of returned consumer confidence after the Rudd Government's first economic stimulus package landed in bank accounts in December.
"The December retail figures are one giant leap of growth for retailers; one small step towards economic recovery. Consumers have done their job injecting the Rudd Government's first stimulus package back into the economy via retail sales. But there is more work to be done for the benefit of vital cash to flow right through supply channels.
"Contrary to various reports placing doubt on planned bonus spend, December retail trade figures indicate consumers were cashed up and willing to shop. Consumers have defied negative rhetoric and panic commentary surrounding the global financial crisis and responsibly enjoyed the gift-giving season," Evans said.
Clothing and soft good retailing was up by $73 million (5.8 per cent), with the household goods sector feeling most of the benefit - up $292 million in December (9.9 per cent), followed by department stores up $123 million (8.3 per cent).
"Over 8.8 million Australians - single-income families, working Australians earning $100,000 a year or less, students, farmers, and families with school children - will benefit from the Government's second stimulus package from March this year. But to save jobs consumers need to do their job again and get this cash flowing through the economy."
Reduced interest rates and the Rudd Government's second stimulus package pointed to improving conditions for consumers but this was only the beginning of returning consumer confidence. For the upward trend to continue, the cash spike needed to flow through the supply channel back to the manufacturers and original producers, Evans said.