CONSUMER CONFIDENCE ON THE RISE
29 September 2015,
AUSTRALIAN conumer confidence appears to be on the rise, with new research suggesting retail spend will increase in the second half of 2015.
Findings from an independent survey of 1000 Australian consumers show that 58 per cent predict they will spend more this year than in 2014.
Andrew Clarke, founder of website Cashrewards, which commissioned the survey, says the findings signify good news for the Australian economy in the lead up to Christmas.
"The outlook for retailers through till the end of 2015 is looking very positive," he says.
"Spending has always been a barometer of consumer confidence in the economy, and low interest rates may be a contributing factor towards the positive sentiment about spending".
In particular, consumers aged between 18 and 24 dominated the predictions of increased expenditure, with 64 per cent saying they will spend more this year than last, while 38 per cent of young respondents also plan to increase their online spending by the end of the year.
Clarke believes the younger demographic will take advantage of opportunities to sustain spending regardless of mitigating circumstances.
"The fluctuating employment rate and Australian dollar certainly don't seem to have deterred spending by the 18 to 25s, which may indicate that this age bracket isn't as affected or just that they don't allow it to affect their planned spending," he says. "This could be because they're very savvy with their online shopping and look for discounts and cashback for all their purchases."
Unsurprisingly, across all demographics, 90 per cent of respondents are motivated to buy on sale or through a promotion.