Australia retail sales slide in August

SYDNEY - Australian retail sales dived for a third straight month in August as half the population were trapped in coronavirus lockdowns, though reopening is in sight as vaccinations race toward worldbeating levels.

Figures from the Australian Bureau of Statistics on Tuesday showed retail sales fell 1.7 per cent in August to $29.3 billion.

That followed a 2.7 per cent drop in July, but did beat market forecasts of a 2.5 per cent slide.

The $360b retail sector accounts for around 18 per cent of gross domestic product and further weakness is expected this month with Sydney, Melbourne and Canberra all locked down.

While the entire economy is certain to shrink sharply this quarter, relief is in sight with New South Wales just a couple of weeks from easing restrictions as people flock to get jabbed.

After an agonisingly slow start, almost 86 per cent of the adult population in NSW have now had a first shot and 60 per cent are double dosed.

By the end of October, the state is expected to pass world leader Portugal which has 84 per cent fully vaccinated.

For Australia as a whole, 77 per cent have had their first dose and the fully vaccinated share will soon surpass the United States.

“At reopening, spending will be driven by pent–up demand after months of lockdown and accumulated savings,” said CBA economist Stephen Wu.

“But we expect bumps along the way as some consumers will be initially wary of catching the virus or from coming into contact with the virus and being forced into isolation.”