Fresh warning bell for Aussie economy
The Australian Bureau of Statistics revealed the dip in its latest data release on business turnover, which covers total income generated from sales before taking out expenses.
A slump in arts and recreation services propelled the decline, with the category tumbling 5.5 per cent over the month.
Manufacturing declined 1.3 per cent and retail slipped 0.8 per cent.
Altogether, turnover in five of 13 industries fell.
'This is the first fall in monthly business turnover since October 2024,' ABS head of business statistics Robert Ewing said.
'Softening the fall, we saw rises in electricity, gas, water and waste services, up 1.7 per cent, and wholesale trade, up 1.1 per cent.'
IG market analyst Tony Sycamore said May's numbers suggested Australia's economy had entered a 'flat patch'.
'It supports other data that indicates the economy remains in a flat patch, with the softness in retail sales confirming the idea that households remain cautious,' he said. Business turnover declined across May 2025. NewsWire / Nikki Short Credit: News Corp Australia
'This reinforces the need for additional monetary policy easing from the RBA (Reserve Bank of Australia) to boost sentiment and growth prospects for the Australian economy into the end of 2025.'
Compared with May 2024, however, overall turnover was 3.3 per cent higher for the month, the ABS said.
May's dip follows a shock decision from the RBA on Tuesday to hold the cash rate at 3.85 per cent, defying expectations from expert commentators and the money markets.
RBA governor Michele Bullock wanted to wait for the June quarter inflation numbers – scheduled for release on July 20 – before moving on rates.
'We just want to confirm with a full quarterly CPI that we're still on track to deliver inflation continuing down to the middle of the band over time,' she said in response to a question from NewsWire.
'That's the reason we're waiting. We decided to hold and we'll reconsider again in August with this extra information and new forecasts.'
bRight Agent co-founder Aaron Scott called the hold a 'cruel blow' for millions of Australian homeowners.
'Despite the fact that a July cut would not have been enough to give most mortgage holders a meaningful reprieve, it would have been welcome by the millions of Aussies who are holding out for more cost-of-living relief,' he said on Tuesday.
'Nobody will be breaking out the Wagyu beef or shiraz.'
On Thursday, banking giant Commonwealth Bank also warned that households remained cautious.
'While we still anticipate a pick-up in household spending in 2025, a slower rate-cutting cycle could soften this recovery over the remainder of the year,' CBA senior economist Belinda Allen said.
Consumer spending lifted 0.3 per cent in June, the bank's closely watched household spending index revealed, for a third month of gains following rises of 0.4 per cent in both April and May.
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an hour ago
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Since the start of the 21st century Australia's work landscape has undergone a number of monumental changes. If you compare a typical Aussie office worker from 25 years ago to now, there are many undeniable differences, from the way work is completed, where the work is done and even those surrounding them in the workplace. With so many major changes over the years, it is hard to choose which has been the most transformative to our workplaces. To celebrate the launch of the new app, we're celebrating the people, places and events we'll never forget from the first quarter of the 21st century by asking for Australia's view. Our 25@25 series will finally put to bed the debates you've been having at the pub and around dinner tables for years – and some that are just too much fun not to include. For example, the Covid-19 pandemic and subsequent lockdowns rapidly transformed where we work, with millions of Australians ordered to work from home. 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'Resulting in unauthentic and at times defensive leadership, along with the abhorrent female quota tick-a-box that seemed to consume workplaces as a first reaction,' she said. 'Workplaces are shifting with an increased focus in areas such as emotional intelligence, diversity and inclusion and with these changes we are seeing more genuine female leaders being comfortable to own who they are and be true to their own leadership style.' Ms Jacobson said this change has also resulted in increasing confidence among women in the workforce. The leadership specialist named the introduction of the Right to Disconnect as another game changer for workplaces across the country, saying it signifies a 'fantastic shift' in our mindset when it comes to work. The law, which came into effect in August 2024, gives employees the right to refuse contact outside of their working hours. Staff are not required to monitor, read, or respond to contact from an employer or third party – within reason. 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Ultimately, it challenges leaders to explain not just how they pay people, but why.' Another change that Ms Calder said has 'forever redefined the way we look at productivity' is remote work, challenging the myth that you can only perform well if you are sitting at your desk in an office. She noted this has been a test of trust for organisations, forcing many to shift the way performance is measured, rather than relying on physical presence as a barometer for how much work a person is putting on. 'If done well, remote work can create workplaces that are not only more efficient but also more humane, valuing results and wellbeing together,' she said. Speaking of productivity, Donna McGeorge, author of the It's About Times series, said the rise of AI within the workplace has been a 'game changer'. The productivity specialist told that, if used correctly, the new technology can give employees time back for more meaningful and high value work. 'Email drafting and meeting summaries are the most obvious places to start,' she said. Other changes like open plan offices have also helped encourage collaboration and more dynamic communication, which can then lead to more productive working relationships between colleagues. 'The best open plan offices balance it out with purpose built spaces for collaboration and quiet spaces for deep work,' Ms McGeorge said. She added that all the changes we have seen over the years are 'signs we're redesigning work to work better for humans'. Take the rest of our 25@25 polls Originally published as What is the best workplace change of the 21st century?
