Australian online spending dipped in July with the NAB’s online retail sales index falling 1.4% in seasonally adjusted terms.
Despite the drop, the NAB estimates online spending grew by 6.2% from a year earlier, slightly above the 5.2% increase recorded in traditional bricks and mortar retailers.
Here’s the NAB’s chief economist Alan Oster on the survey’s findings.
“In year on year terms, all categories except daily deals (-25.2% yoy) recorded growth in July. Growth accelerated in online sales of grocery & liquor (+7.4% yoy) and personal & recreational goods in July (4.3% yoy from -0.5% in June). Though slowing from the previous month, electronic games and toys still leads growth (19.2% yoy), followed by media (13.9% yoy), and homewares and appliances (+11.7% yoy), with fashion recording high single digit growth (+8.6% yoy). Department and variety stores saw much slower growth than the prior month (+1.9%)”.
While still a fraction of all retail sales – the NAB estimates online sales totalled $17.4 billion in the year to July compared to the $1.1468 billion increase reported by the ABS in the year to June.
The chart below shows online spending is growing significantly faster due to its lower base effect.
The comparison between online and traditional retail sales can be seen in the chart below.
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