Citi: Australian retailers will benefit from a rebound in consumer demand in the first half of 2026.

Jin10 data reported on July 22 that Citigroup analysts pointed out that Australian retailers are expected to benefit from enhanced consumer demand in the first half of 2026. The bank’s economists predict that the Reserve Bank of Australia will complete its current interest rate cut cycle by December 2025, prompting the analyst team to forecast that consumer spending capacity will increase by AUD 50-90 billion over the 12 months leading up to June 2026. Analysts stated that this means retail spending will accelerate its rise in the second half of that period. It is worth noting that the consumer spending capacity for the 2025 fiscal year is only expected to rise by about AUD 20 billion, far below the forecast of AUD 70 billion, mainly due to consumers’ tendency to increase savings.