Retail sales fell 1.8 per cent in June from May, the biggest drop so far this year, as consumer demand was hit by epidemic blockades and mobility restrictions in much of the country, according to figures released by the Australian Bureau of Statistics on Wednesday. As the number of COVID-19 cases continues to increase, this has cast a shadow over Australia's economic outlook in the third quarter.
ANZ economists wrote in a report: "We expect retail sales to fall again in July as Sydney's blockade strengthens, Melbourne begins another blockade, and South Australia enters the blockade."
"as the risk of a long-term blockade in Sydney increases, so does the risk of anaemic recovery, especially if financial support is not as strong as it was during the long-term blockade of Melbourne in 2020."
Most economists now expect Australia's GDP to contract in the third quarter, the first contraction since the second quarter of last year.