They warned, however, that retail is the only sector to have negative business conditions as household budgets have weakened.
Retail sales will continue to rise as a 3.9% year-on-year growth is predicted for December, supply chain company CHEP has forecasted.
The month of November is also expected to see 3.6% year-on-year sales increase, with a turnover of AU$27.1 billion. The year-on-year retail index growth for the third quarter is said to have an estimate of 3.5%, following the 3.1% result from the previous quarter last June.
Households are also said to be using their savings to support further spending activities. CHEP also warns of tightening consumer spending due to growing overseas lending costs for banks as well as consumers’ looking to reduce risky lending practices.
They also mentioned that the growing pallet trend is an indicator that retailers are confident about conditions during the Christmas period.
“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,” David Rumbens, CHEP’s partner from Deloitte Access Economics, said.
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