TASMANIA’s peak business body, the Tasmanian Chamber of Commerce and Industry (TCCI) says the latest retail sales figures released by the Australian Bureau of Statistics (ABS) show that the economy is still sluggish and taking a long time to recover.
TCCI Chief Executive Michael Bailey said while Tasmania’s monthly sales growth of 0.6 per cent was at least positive, the yearly decline in retail sales of 1.7 per cent showed a clearer picture.
“This is disappointing and is a clear indication that consumers are cautious and are not rushing to spend money,” Mr Bailey said.
“It is a worry that national retail sales growth for March was even lower than Tasmania’s, pulled down by falls in the biggest states of Victoria and New South Wales.”
Mr Bailey said the ABS pointed to increased business costs holding down retail sales growth.
“The Tasmanian and Federal Governments need to take note of this.
“Businesses are not expanding because of increased regulatory and other costs imposed by Government. This means that there is little or no growth in total wages income and no additional money for consumers to spend.
“Retail sales growth is a strong indicator of consumer confidence and a pointer to stronger economic growth.
“While the lower Australian dollar will help the retail sector, consumers are showing little confidence and the recovery in this sector continues to be slow.”
Mr Bailey said the national increase in new home sales for May was encouraging.
“The increase of 1.6 per cent, taking sales back to the highest level in 18 months, is welcomed but regrettably there is little evidence of any growth in Tasmania.”