Fall in retail sales reflects still fragile economy

The slowing retail figures and the flat private sector investment capex figures show the economy is still fairly fragile, which justifies the RBA’s recent rate cut, writes KPMG Australia Economist Terry Rawnsley.

At a glance Retail turnover fell slightly in April 2025, down 0.1 per cent in seasonally adjusted terms Household spending remains subdued, with weather in April impacting retail trade Economy is still fragile, justifying RBA's recent rate cut The 0.1 per cent fall in retail sales in the month of April represents a worse result than was expected and cautious spending by consumers could be the first insight into how the current global uncertainty is translating into household confidenc...

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Authors: Terry Rawnsley

Published Date: 02 June 2025