Why are ASX 200 retail shares getting bought up today?

A laughing woman pushes her friend in a supermarket trolleyA laughing woman pushes her friend in a supermarket trolley

S&P/ASX 200 Index (ASX: XJO) retail shares are leaping today amid news shopping spending jumped in the final week of June.

Retail shares rising today include JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and Wesfarmers Ltd (ASX: WES).

Let’s take a look at what is impacting these retail companies today.

ASX 200 retail shares rise

Harvey Norman shares are leaping 1.47% today, JB Hi-Fi shares are rising 2.39%, while Wesfarmers shares are jumping 2.75%.

Consumer shares are rising amid positive news for the retail sector. Australia and New Zealand Banking Group Ltd (ASX: ANZ) has released figures showing shopping jumped 7.7% in the last weekend of June, the Australian Financial Review reported.

In quotes cited by the AFR, the ANZ also predicts a 50 basis rate rise is a “done deal” due to this consumer spending. ANZ economist Madeline Dunk said:

The RBA has noted it will be ‘watching consumer spending carefully’, and solid June spending only reinforces the case for a 50bp rate hike on Tuesday, as do strong job vacancies, a very tight labour market and still very negative real interest rates.

ANZ Roy Morgan New Zealand Consumer Confidence data released on Friday showed 7% of Australians rated “now” as a decent time to buy an item for the home in June. The release stated:

The proportion of people who believe it is a good time to buy a major household item, the best indicator for spending, was up 7% points to 28% while there were now 49%, down 2% points, who said now is a bad time to buy a major household item. 

Overall, the consumer confidence index dropped 1.8 points in June. The authors noted households are “dealing with a lot right now”.

This includes incomes struggling to keep up with inflation, interest rate rises, house prices descending, and COVID and economic uncertainty.

Share price snapshot

The JB Hi-Fi share price has descended more than 22% in the past year. Meanwhile, Wesfarmers shares have leapt 27% and Harvey Norman shares are up 32%.

For perspective, the ASX 200 has lost 9.4% in the last 12 months.

The post Why are ASX 200 retail shares getting bought up today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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