Fed: Family payments bonus boosts shopper spending in June

AAP General News (Australia)
08-02-2004
Fed: Family payments bonus boosts shopper spending in June

Official figures show retail sales recorded their biggest monthly jump in three years in June.

But the rise failed to meet market expectations of a massive spending spree and it's
unlikely to push the Reserve Bank into raising interest rates at its monthly meeting tomorrow.

The Australian Bureau of Statistics says sales rose 2.1 per cent in June to a new record
high of $16.33 billion -- the biggest increase since February 2001.

Economists had expected a jump of four per cent as the $600-per-child bonus pumped
an extra $2.2 billion into families' pockets in the last two weeks of the month.

David Jones, the Just Group, sports and leisure retailer Rebel and clothing retailer
Colorado have all upgraded their earnings forecasts in the last month, and economists
say consumer spending will keep rising.

The Reserve Bank will announce its decision on interest rates tomorrow morning following
today's monthly board meeting.

AAP RTV kmh/sb/wjf/mj/rp

KEYWORD: ECONOMY (CANBERRA)

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