The National Retail Association (NRA) are reporting steady growth across the board following the surprise interest rate cut in February.
According to the Australian Bureau of Statistics (ABS), a growth of 0.7 per cent occurred for February, “in seasonally adjusted terms.”
NRA CEO, Trevor Evans, believes it's promising considering that February is the shortest month of the year.
“This continues the run of steady growth for retail which is very pleasing to see, particularly given that other sectors such as mining and resources are struggling.”
Evans has also applauded the retail sector for job security.
“While some other sectors are shedding jobs at the moment, retail continues to be one of the best placed industries to pick up the slack.”
While the rate cuts have proved beneficial for most, there has been some decline in retail subsectors.
The ABS have reported a fall of -0.2 per cent for clothing, footwear and personal accessories, alongside cafes, restaurants and takeaway food services at -0.4 per cent and department stores at -3.2 per cent.
Evans warns that the despite cuts being welcomed they can be “a double-edged sword.”
“More money in shoppers’ pockets is always good news, but if rates cuts are viewed as a sign of the economy beginning to falter, that can have a negative impact on purchasing decisions.”
The ABN report recorded positive results for all Australian states, with New South Wales the strongest contributor to growth.