Black Friday Spending In November Sent Australian Retail Sales Soaring To Unprecedented Heights

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Australians leveraged incredible discounts during Black Friday and went on a shopping spree, as retail sales surged in November, far exceeding expectations.

The Australian Bureau of Statistics (ABS) recently announced that retail sales jumped by a remarkable 1.4% in November, beating expectations and reaching an all-time high. This growth far exceeded the projected 0.6%, signalling strong consumer confidence in the economy despite challenging times.

The ABS recently revised its initial October report of a 0.2% decline to an astounding rise of 0.4%, which was still the smallest increase in retail sales during this year’s cycle thus far.

According to the ABS statement, consumers spent heavily on clothing, footwear, furniture, and electronic goods due to Black Friday discounts. Although this event is typically geared towards Americans as it occurs after Thanksgiving Day each year, over the past decade, retailers worldwide have been offering spectacular deals throughout this period.

With inflation rising, consumer shopping activity in November was likely also increasing.

Given the increasing popularity of Black Friday sales, the smaller increase in October may reflect consumers waiting to take advantage of discounting in November, particularly in light of cost-of-living pressures,” Ben Dorber, ABS head of retail statistics, said in a statement.

While industries exposed to the Black Friday surge experienced tremendous sales increases, shoppers spent significantly less on food – a key source of strength for retail spending this year.

After the nation lifted much of its anti-COVID restrictions this year, expenditure on food retailing, cafes, and restaurants skyrocketed – until November, when it recorded its weakest rise in months.

After Australia’s post-COVID economic reopening, consumer price index inflation has experienced a drastic surge to an unprecedented 30-year high during the third quarter. Even with these developments, this inflation is projected to stay elevated in upcoming months due to pandemic-era stimulus measures that have impacted their economy.

In response to this, the Reserve Bank decided to drastically raise interest rates, which are expected to adversely impact consumer spending in the upcoming months when combined with high inflation.

With the end of COVID in sight, Australia’s economic recovery seemed to be on track – yet unfortunately, it appears that momentum has lost steam after missing growth forecasts for the third quarter.

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