Australia’s Retail Sector Is ‘Under Duress’ as Earnings Season Starts
- Retail volumes facing weakest conditions since 1991 recession
- Consumption likely to stay stagnant until wages growth pickup
A shopper in Sydney, Australia.
Photographer: Brendon Thorne/Bloomberg
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As Australia’s earnings season gets underway this week, the outlook for retail stocks is gloomy.
Back to back interest rate reductions and the government’s signature income tax cuts don’t appear to have sparked an increase in consumer spending, economists say. With stagnant domestic wages growth and offshore headwinds stemming from trade tensions and dovish central banks, there’s a risk that forecasts for the 2020 financial year may also be subdued.