Retail growth shows no sign of slowing down
Expect to further strengthen this year, according to forecasts by the Australian Food and Grocery Council (AFGC).
Released today, the 13th AFGC CHEP Retail Index notes retail growth is at its strongest after more than four years, showing year-on-year growth of 5.8 percent in the March quarter with a turn over of $23.01 billion.
“It’s encouraging that retail performance has improved across all sectors since mid-2013 – from 1.9 per cent growth in June 2013 to 5.9 per cent in February 2014. Retail sales growth is now at its strongest for more than four years,” said AFGC CEO Gary Dawson.
The strong growth will most likely continue, being predicted to go as high as 6.6 percent by May 2014 reaching $23.62 billion. Growth can be attributed to the period of low interest rates late last year, according to the latest retail data from the Australian Bureau of Statistics, improving retail performance across all sectors.
Despite weak labor income growth and slow job growth, low interest rates and falls in the value of the Australian dollar are providing stimulus to the Australian economy.
“The continued strength in retailer sales over the past two quarterly results suggests a more stable and certain view of economic conditions. Expectations for the next quarter indicate resilience in Australian retail supply chains and sales results,” noted CHEP Australia & New Zealand President, Phillip Austin.
