RETAIL SPENDING ON THE RISE

Written on the 11 February 2014

RETAIL SPENDING ON THE RISE

 CONSUMER confidence has improved slightly in the last week but remains low for the month, in the ANZ-Roy Morgan Consumer Confidence survey.

Similar to business confidence trends, there has been a 0.7 per cent jump back to levels seen during the September election.

ANZ chief economist Warren Hogan says the outlook for Australia’s economy is becoming more positive.

“Despite retracing since the federal election last year, consumer confidence remains firmly above levels seen in 2011 and 2012.

“This suggests household consumption growth should begin to improve,” he says.

Hogan attributes the growth to low interest rates and higher asset prices.

“There are already signs that the low Australian dollar is encouraging domestic retail spending, with retail sales growth strengthening notably since last July.”

The bank forecasts household consumption will slow with mining activity mid-year, but pick-up again next year.

Signs also indicate strength in the construction industry, with an increase in residential and non-residential building approvals.

“Nonetheless, there are some significant uncertainties to this outlook, in particular the extent of decline in the terms of trade over the next year or so.

“ANZ thinks the RBA will continue to leave monetary policy at accommodative levels for some time and forecasts the cash rate to remain at 2.5 per cent this year and gradually increase in 2015.”


Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter