Retail sales steady for now, despite weather disruptions

Retail sales growth was steady at 0.3% m/m in March. Sales were lower in Queensland due to the impact of Ex-Tropical Cyclone Alfred but were relatively strong across the other regions.

The fundamentals for consumption growth remain healthy, with the labour market in a tight position and inflation continuing to trend lower. Moreover, interest rate cuts and greater government support will keep some momentum in consumer spending. However, the hit to confidence and heightened uncertainty generated by tariff announcements will hold spending back in the coming months.

Chart 1: Sales momentum stalled in Q1