Mixed Economic Signals: Retail Rises but Jobs and Business Weaken

Retail sales rose 0.3% in February, mostly due to Taylor Swift concerts boosting clothing and accessories sales in NSW and Victoria. Sales fell in other categories and states.

Job vacancies fell 6.1% in the 3 months to February, down 17.7% over the past year, indicating a weakening labor market.

Business insolvencies are up 36.1% in the first 7 months of 2023-24 financial year compared to last year, on track for over 10,000 this year.

The data indicates headwinds for the economy that may force the RBA to cut interest rates in the 2nd half of 2024 to provide relief for strained households.

Overall the economy is slowing with signs of a deteriorating jobs market, high inflation and interest rates impacting consumers and businesses.