Deloitte analysts caution that Australia’s retail sector has been in recession for 18 months.

Australia’s retail sector has been in recession for nearly two years as Australians have cut back on shopping, analysts have warned.

Deloitte Access Economics partner Dave Rumbens noted that retail spending has declined in six of the last seven quarters, predicting a bleak Christmas shopping season.

“The evidence shows that Australia’s retail sector has effectively been in recession for the past 18 months,” Rumbens said. “A retail recession sequel is not surprising. Real retail spending has fallen in six of the last seven quarters, and the numbers look even worse on a per capita basis. Real per capita retail spending has contracted for the last eight quarters and is now 2.5 percent lower than in June 2023 and 6.3 percent lower than in June 2022.”