Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Consumer spending exceeds expectations

Staff Reporter 2 minute read

Solid post Christmas spending could indicate that Australian consumers have responded to lower interest rates and the government stimulus package.

Despite increasing economic uncertainty, Australian consumers spent a greater than expected $6.5 billion in the January sales.

According to the Australian Retailers Association (ARA) retailers benefitted from the government’s stimulus package with sales between Boxing Day and 31 January exceeding expectations by 3.2 per cent.

ARA executive director Richard Evans said retailers were beginning to see the effects of the Reserve Bank’s rate reductions with a significant impact to be felt by March or April and a sustained improvement on the cards for September.

"We now see improved growth to return by September 2009, but the rest of the economy lags three to six months behind the retail sector cycle. This means there may not be good news for other industries until December 2009/January 2010,” he said.

Advertisement
Advertisement

"Retailing is the barometer of the economy and although there are signs of emerging consumer confidence the sector needs more stimuli to drive cash and thus save jobs," Evans said. 

The ARA is calling on the government to implement a range of measures to stimulate consumer spending including incentives for lenders to provide lower credit card rates, personal tax income relief and a targeted consumer stimulus package.

COMMENT HERE

 


Consumer spending exceeds expectations
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
mortgage choice 850 Major brokerage appoints new GM of distribution

Mortgage Choice has announced that Citi’s former head of bankin...

ANZ new still ta ANZ extends business loan terms

The major bank has announced that it will extend the maximum loan...

cash money rolls Credit growth stunted by dive in business lending

Credit growth has waned as a result of a sharp drop-off in busine...

FROM THE WEB