Consumers spend big in December 2008

Retail spending recorded the strongest monthly increase in December 2008 since August 2000, exceeding even the most optimistic expectations of Kevin Rudd’s first stimulus package.

According to official statistics from the ABS, retail spending rose 3.8% in December 2008 from November 2008, seasonally adjusted, to reach $19.2 billion, as Australians rushed out to spend - as instructed by the Prime Minister himself.

The Australian Retailers Association (ARA) said the result cemented the success of the government’s stimulus package and showed signs that consumer confidence was returning.

"The December retail figures are one giant leap of growth for retailers; one small step towards economic recovery. Consumers have done their job injecting the Rudd Government's first stimulus package back into the economy via retail sales,” commented Richard Evans, ARA executive director.