ASX 200 retail shares appear to be weathering the storm today despite consumer confidence falling. However, new figures from the ABS also show consumer spending lifted in the month of June.
Retail shares on the ASX 200 include JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and Wesfarmers Ltd (ASX: WES).
Let's take a look at what is impacting ASX retail shares today.
Consumer insights
JB Hi-Fi shares are 0.91% in the green today, while the Harvey Norman share price is up 0.12%. Meanwhile, the Wesfarmers share price is rising 1.20%. The S&P/ASX 200 Index (ASX: XJO) is up 0.16%.
ANZ Roy Morgan research released today shows consumer confidence fell 4.5% last week. Inflation expectations also lifted 0.1 percentage point to 5.6%.
Confidence on 'future financial conditions' dropped 5.5%, while confidence in 'current financial conditions fell' 1.9%.
ANZ head of Australian economics David Plank said:
Consumer confidence declined 4.5% last week, to its lowest levels since April 2020,as the RBA increased interest rates by 50 basis points for the third month in a row to 1.85%.
Household inflation expectations increased 0.1 percentage point to 5.6% despite petrol prices falling for a fourth consecutive week. Demand for housing has been dropping, along with house prices.
Meanwhile, a research report out of Westpac shows the consumer sentiment index has dropped 3% from 83.8 in July to 81.2 in August. Confidence has fallen 22.9% since November 2021, the report said, stating:
This reading is on a par with the lows of the Covid and Global Financial Crisis although still well above the lows during the late 80/s/ early 90's recession.
While consumer confidence is down however, the ABS has released statistics today saying household spending jumped 10.2% in June. Transport spending lifted 22.7%, while clothing spending rose 16.3%. Spending in hospitality venues like hotels, cafes and restaurants surged 17.1%, while recreation and culture spending jumped 15.5%.
Head of macroeconomic statistics Jacqui Vitas said:
This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to COVID-19 were experienced across the country.
Spending categories most impacted from COVID-19 responses (transport, hotels, cafes and restaurants, and clothing and footwear) have now returned to pre-pandemic levels.
