Web sales frenzy is over
ONLINE retail sales have sagged as a spending frenzy fades in the aftermath of the Government’s Budget-related small business tax cuts.
The latest NAB Online Ret tail Sales Index shows a 1.4 per c cent dip in July, a significant deterioration on the revised 2.3 per cent growth in June.
NAB chief economist Alan Oster said Treasurer Joe Hockey’s $20,000 instant asset write-offs for small businesses, announced in the May Budget, could have contributed to the June surge.
“It’s part of the reason why June was so strong and, therefore, why July was so weak,” he said. “We think (now) we’re getting back to normal.”
Online sales rose 6.2 per cent to $17.4 billion in the year to July, with electronic games and toys the top categories.