Jobs growth and savings support Q4 retail spending but wage growth needed to sustain or improve the ‘steady’ figures
RETAIL turnover continues to expand at a steady rate heading into the final quarter of 2018, despite difficult financial conditions for households, as consumers draw down on savings to support spending activity, new figures show.
The figures are published in the latest edition of the quarterly CHEP Retail Index.
The index uses transactional data from CHEP pallet movements to provide a lead indicator of Australian Bureau of Statistics retail trade data, predicts year-on-year retail sales growth to continue in the December quarter.
It shows households can only continue to draw on savings to support spending activity for so long, with the outlook for spending contingent on stronger wage growth.
The labour market is tightening, as business continues to feel confident enough about conditions to add to their permanent staffing levels and this is supporting consumer confidence.
A higher trend in pallet movements suggests retailers’ are confident about conditions heading into the Christmas period and expect spending to strengthen heading into the last quarter of 2018.
Also in Australian Food News
- See Kroger’s top five food trends for 2019
- US supermarket titan embraces ugly fruit and vegetables, follows success in Australia
- See Europe’s award-winning alternative-protein startups
- Snapshot: Western Sydney is a food and grocery powerhouse
Index: Key figures
- Turnover of $27.1billion in November 2018, with year-on-year growth for the month of November increasing to 3.6%
- Quarterly basis, 3.4% year-on-year growth for the September quarter and increasing to 3.9% for the December quarter.
Providing commentary on the index, David Rumbens, partner at Deloitte Access Economics, says “buoyant retail conditions in 2018 have been supported by a rundown of household savings, along with solid employment growth.
“Retailers are showing some confidence that this rate of spending will be maintained through the crucial Christmas period.”
The CHEP Retail Index analysis and commentary is provided by Deloitte. It is recognised as a reliable lead indicator of Australian Bureau of Statistics retail trade data.
A Queensland carrot farm is inviting the public to come pick their own carrots as a unique way to de...
Australia’s leading national food awards program, the Australian Food Awards (AFA), is encouraging ...
A variety of canola containing omega-3 has been approved for human consumption and use in animal fee...
PEOPLE are happier when they are healthier - so if you eat well, you stay well, Tom Griffith, co-fou...
The number of Australian children who outgrow egg allergy has contributed to a drop in food allergie...
A bid to increase tax on beer sold in Australia to discourage consumption has been labelled “misguid...
A “short, sharp review” of live exports of sheep during the Middle Eastern summer will occur after v...
Australian soft drinks have higher levels of glucose sugar than US soft drinks a study has found.