Retail Slump and Building Data Keep Eyes on RBA Ahead of ASX 200 Meeting

July 02, 2025 07:55 PM AEST | By Team Kalkine Media

Retail Slump and Building Data Keep Eyes on RBA Ahead of ASX 200 Meeting — Image source: Shutterstock

Retail Momentum Slows Despite Seasonal Lift in Apparel

Retail sales data for May highlighted modest increases, primarily supported by renewed interest in clothing-related purchases. However, the broader pattern showed restraint, especially within food and household goods categories, where momentum failed to pick up significantly.

The data suggested that consumers remain cautious in their spending, aligning with trends seen in earlier months. Although seasonal factors played a part in lifting apparel demand, it did not translate into broader strength across retail categories.

Housing Approvals Lag as Detached Homes Stall

The housing sector also presented mixed signals. While total building approvals moved higher for the month, the growth was largely attributed to activity in multi-unit dwellings. Approvals for standalone houses edged only slightly upward, reflecting subdued appetite in new home construction.

This divergence adds to ongoing discussions about housing affordability, planning processes, and shifting preferences in the residential sector. The performance of the building approvals metric has become a key reference point in gauging broader economic resilience.

Attention Turns to RBA Amid Cautious Economic Indicators

All eyes now turn to the Reserve Bank of Australia, with its meeting scheduled across two days early next week. With the central bank set to assess a broad suite of economic signals, the latest consumer and housing figures may add weight to current expectations circulating in financial markets.

RBA Governor Michele Bullock is due to address the media following the outcome, offering commentary that is expected to be closely watched across both public and private sectors.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.