Tax Cuts Put Away for Rainy Day as Spending Spree Ends

Spending was flat last month, with tax cuts yet to materially improve retailer fortunes as many chose to stash extra cash away. The flat July outcome was below the 0.3 percent growth consensus forecast and followed two months of upbeat results. Australian Bureau of Statistics (ABS) head of retail statistics Ben Dorber said discounting had boosted activity in May and June and “the higher level of retail turnover was maintained in July.” The start of the month ushered in long-awaited tax relief but CommSec economist Ryan Felsman said it was yet to have a material impact on spending. “Consumer spending on clothing and footwear, and at department stores took a hit last month as shoppers turned frugal amid elevated borrowing costs and cost of living pressures,” he said....