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PT Solid Gold Berjangka | Australian Retail Sales Moderate in February, Missing Estimates

01:30 28 March in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP by admin_sgb_tcc
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Ekonomi Australia Australian Retail Sales PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | This summary provides an overview of the recent economic trends in Australia, particularly focusing on retail sales, inflation, and the broader economic context:

  • Retail Sales in February: Australian retail sales rose 0.3% in February, slightly below the expected 0.4% increase. This follows a larger 1.1% jump in January, which was supported by major sports events like tennis and cricket tournaments. Despite some growth, households are showing caution due to elevated inflation and high interest rates.
  • Year-on-Year Retail Sales: Compared to the previous year, retail sales were up 1.6%, which is considerably lower than the 4-5% pace seen earlier in 2023. Factors such as higher borrowing costs and cost-of-living pressures are impacting consumer spending.
  • Inflation: In February, Australian inflation remained steady, contrary to expectations of a slight acceleration. This, combined with slower retail sales growth, indicates that the Reserve Bank’s tightening cycle is affecting household spending.
  • RBA’s Concerns: Retail sales are significant because consumption accounts for over half of Australia’s GDP. The Reserve Bank of Australia (RBA) has emphasized that the outlook for domestic consumption is a key uncertainty in its policy decisions.
  • Broader Economic Trends: Overall economic data is aligning with the RBA’s forecasts. GDP growth has eased, inflation is moderating, retail sales are slowing, and unemployment remains low. However, a recent survey showed consumer sentiment in March remained “deeply pessimistic.”
  • Job Vacancies: A separate report from the Australian Bureau of Statistics (ABS) indicated a 6.1% drop in job vacancies between November and February. Job vacancies are significantly lower (23.5%) than their peak in May 2022, which is when the RBA began its tightening cycle.
  • RBA’s Next Steps: The RBA is set to meet on May 6-7, and it is expected to maintain its key rate at 4.35%. Governor Michele Bullock recently suggested that the monetary tightening cycle has nearly concluded. However, there’s no indication yet of when rate cuts might be considered.

This summary gives an insight into the cautious economic environment in Australia, where households are facing pressures from inflation, high interest rates, and slower retail sales growth.

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