The Decline of Retail Trade as an Economic Indicator

Oct 13, 2025 by leolavanderia.com.br 56 views

Introduction

The Australian Bureau of Statistics (ABS) has announced plans to cease the Retail Business Survey and Retail Trade Publication, citing the need to balance organisational priorities and reduce the burden on businesses. This decision marks a significant shift in the way economic indicators are collected and presented. In this article, we will explore the reasons behind this change and introduce the new Monthly Household Spending Indicator (MHSI), which will provide a more comprehensive picture of household consumption.

The Decline of Retail Trade as an Economic Indicator

Retail Trade statistics have long been used as an early indicator of household consumption. However, over the years, retail trade has been declining as a proportion of total household consumption. According to the ABS, retail trade coverage has fallen from 56.2% of household consumption in 1959-60 to 33.2% in 2022-23. This decline is a result of changes in consumer behavior, with more people shopping online and reducing their reliance on traditional retail outlets.

The Last Release of the Retail Trade Publication

The last release of the Retail Trade Publication will be on 31 July 2025, referencing the June 2025 period. This marks the end of an era for retail trade data, which has been a staple of economic indicators for decades. However, the ABS is not abandoning its commitment to providing timely and accurate economic data.

Introducing the Monthly Household Spending Indicator (MHSI)

The MHSI is a new economic indicator that provides a more comprehensive picture of household consumption. It covers around 68% of household consumption, compared to the 33% covered by the Retail Trade data. The MHSI is based on administrative data from the private and public sectors, reducing the burden on businesses while continuing to produce important economic indicators.

Benefits of the MHSI

The MHSI offers several benefits over traditional retail trade data. Firstly, it provides a more comprehensive picture of household consumption, covering a larger proportion of the economy. Secondly, it is based on administrative data, which reduces the burden on businesses and provides more accurate and timely information. Finally, the MHSI is part of a suite of economic indicators that provide a more complete picture of the economy.

The Monthly Business Turnover Indicator (MBTI)

The MBTI is another important economic indicator that provides a frequent and timely read on economic activity. It is based on administrative data from the private and public sectors and covers important parts of the economy. The MBTI is an important complement to the MHSI, providing a more complete picture of the economy.

Why the ABS is Making this Change

The ABS is making this change to balance organisational priorities and reduce the burden on businesses. The Retail Business Survey and Retail Trade Publication have been in place for decades, but the ABS has determined that it is no longer the most effective way to collect and present economic data. By using administrative data and reducing the burden on businesses, the ABS can provide more accurate and timely information while also reducing the administrative burden on businesses.

Conclusion

The replacement of retail trade data with the Monthly Household Spending Indicator (MHSI) marks a significant shift in the way economic indicators are collected and presented. The MHSI provides a more comprehensive picture of household consumption, covering around 68% of household consumption. It is based on administrative data, reducing the burden on businesses and providing more accurate and timely information. The MHSI is part of a suite of economic indicators that provide a more complete picture of the economy. As the ABS continues to evolve and improve its economic indicators, it is clear that the MHSI will play an important role in providing timely and accurate information to businesses and policymakers.

Frequently Asked Questions

Q: What is the Monthly Household Spending Indicator (MHSI)?

A: The MHSI is a new economic indicator that provides a more comprehensive picture of household consumption. It covers around 68% of household consumption and is based on administrative data from the private and public sectors.

Q: Why is the ABS replacing retail trade data with the MHSI?

A: The ABS is making this change to balance organisational priorities and reduce the burden on businesses. The Retail Business Survey and Retail Trade Publication have been in place for decades, but the ABS has determined that it is no longer the most effective way to collect and present economic data.

Q: What are the benefits of the MHSI?

A: The MHSI offers several benefits over traditional retail trade data, including a more comprehensive picture of household consumption, reduced burden on businesses, and more accurate and timely information.

Q: What is the Monthly Business Turnover Indicator (MBTI)?

A: The MBTI is another important economic indicator that provides a frequent and timely read on economic activity. It is based on administrative data from the private and public sectors and covers important parts of the economy.

Q: Why is the ABS making this change now?

Q: What is the Australian Bureau of Statistics (ABS) replacing the Retail Trade data with?

A: The ABS is replacing the Retail Trade data with the Monthly Household Spending Indicator (MHSI). The MHSI provides a more comprehensive picture of household consumption, covering around 68% of household consumption.

Q: Why is the ABS replacing the Retail Trade data?

A: The ABS is replacing the Retail Trade data to balance organisational priorities and reduce the burden on businesses. The Retail Business Survey and Retail Trade Publication have been in place for decades, but the ABS has determined that it is no longer the most effective way to collect and present economic data.

Q: What is the Monthly Household Spending Indicator (MHSI)?

Q: How does the MHSI differ from the Retail Trade data?

A: The MHSI differs from the Retail Trade data in several ways. Firstly, it covers a larger proportion of household consumption, around 68% compared to the 33% covered by the Retail Trade data. Secondly, it is based on administrative data, which reduces the burden on businesses and provides more accurate and timely information.

Q: What are the benefits of the MHSI?

Q: What is the Monthly Business Turnover Indicator (MBTI)?

Q: How does the MBTI relate to the MHSI?

A: The MBTI is an important complement to the MHSI, providing a more complete picture of the economy. Together, the MHSI and MBTI provide a more comprehensive understanding of household consumption and economic activity.

Q: What is the timeline for the replacement of the Retail Trade data?

A: The last release of the Retail Trade Publication will be on 31 July 2025, referencing the June 2025 period. The MHSI and MBTI will be available from the ABS website, providing a more comprehensive and timely picture of household consumption and economic activity.

Q: How can I access the MHSI and MBTI?

A: The MHSI and MBTI will be available from the ABS website, providing a more comprehensive and timely picture of household consumption and economic activity. You can access the data by visiting the ABS website and searching for the MHSI and MBTI.

Q: What are the implications of the replacement of the Retail Trade data?

A: The replacement of the Retail Trade data with the MHSI and MBTI has significant implications for businesses and policymakers. The MHSI and MBTI provide a more comprehensive and timely picture of household consumption and economic activity, allowing for more informed decision-making.

Q: How will the replacement of the Retail Trade data affect businesses?

A: The replacement of the Retail Trade data with the MHSI and MBTI will have a positive impact on businesses. The MHSI and MBTI provide a more comprehensive and timely picture of household consumption and economic activity, allowing businesses to make more informed decisions.

Q: How will the replacement of the Retail Trade data affect policymakers?

A: The replacement of the Retail Trade data with the MHSI and MBTI will have a positive impact on policymakers. The MHSI and MBTI provide a more comprehensive and timely picture of household consumption and economic activity, allowing policymakers to make more informed decisions.

Q: What are the next steps for the ABS?

A: The ABS will continue to develop and improve the MHSI and MBTI, providing a more comprehensive and timely picture of household consumption and economic activity. The ABS will also continue to work with businesses and policymakers to ensure that the MHSI and MBTI meet their needs.