Shoppers have been using their Federal Government tax cheques to blitz the nation's stores, new figures show.
Australian Bureau of Statistics figures show retail trade turnover lifted one per cent in May, just as up to 8.5 million taxpayers were receiving their stimulus cheques.
The money went into almost all sectors, with department stores (up 5.5 per cent), clothing and soft goods (up 2.9 per cent) and cafes, restaurants and takeaways food outlets (up 1.4 per cent) the biggest winners.
Chain and large retailers enjoyed a 2.5 per cent lift in turnover, while smaller retailers had a 2.3 per cent lift.
WA shoppers, who had been in their shells in recent months, flocked back with sales up 3.5 per cent in the month. Sales were also up in Victoria, Queensland, South Australia and the ACT, while they were flat in NSW and the Northern Territory. Sales edged down 0.1 per cent in Tasmania.
However, concerns the Federal Government was about to end its generous subsidy for first home buyers resulted in a 12.5 per cent fall in building approvals through May.
The ABS said private home approvals dropped 2 per cent, but approvals for units and flats fell 43.6 per cent.
The Government decided in the May budget to extend the first home buyers grant increase until the end of the year, with analysts expecting an increase in approvals and loans from June.
The figures come as skilled vacancies, as measured by the Education, Employment and Workplace Relations Department, showed another fall, dropping 3.7 per cent in May. It is now 61.5 per cent down over the past year.
SHANE WRIGHT ECONOMICS EDITOR
