Economic weakness hits Qld retailers

2014 has been a challenging year for Queensland retailers, with retail turnover not growing, and actually declining by around 1% from levels seen earlier in the year (see chart below). I suspect a large part of this is due to the mining downturn and the broader economic weakness that has seen unemployment increase from 6.1% to 6.7% over the year so far. Online purchases from overseas may play a role, although these would affect national turnover, too, and it has at least been growing at a modest rate, according to the ABS data (see Queensland Treasury information brief). Even if they can’t explain the recent poor retail turnover data, online purchases should have a lower threshold for GST, as I’ve posted on before (see Costello right to support drop in $1,000 GST-free threshold for online purchases).

retailturnover_Aug14On yesterday’s retail turnover figures, also see Pete Faulkner’s post Retail trade disappoints…particularly in Queensland. Pete makes the good point that, when you consider inflation, “retail sales in Queensland have fallen in real terms over the past year.”

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This entry was posted in Macroeconomy, Mining, Retail trade, Tax and tagged , , , , , , , . Bookmark the permalink.

2 Responses to Economic weakness hits Qld retailers

  1. Katrina Drake says:

    Seems the boycott against the deficit levy appears to be working. I am certainly finding the service is much better at Vinnnies, and you can purchase anything you really need on gum-tree.

    • Gene Tunny says:

      Yes, good point about gum tree. We’re making do with second hand things more than say a decade ago, possibly, and that would constrain retail turnover growth to an extent. Thanks for the comment, Katrina.

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