Declining retail sales will get ‘worse before it gets better’

Judo Bank Chief Economic Advisor Warren Hogan says a plunge in consumer spending is “to be expected” after a series of interest rate hikes during a cost of living crisis. “I actually think this is going to get worse before it gets better,” Mr Hogan told Sky News host Sharri Markson. “There shouldn’t be any surprises here ... we are in a declining trend for spending and that’s going to put pressure on many retailers.” Retail sales in December fell 2.7 per cent month on month, revealing a shift away from consumer spending in the lead-up to Christmas. This December, sales are up 0.8 per cent compared with last year with $35.18 billion worth of goods sold.