Did Tezza ever get 'round ta tellin' us just how come a Kiwi wot lives 'n works in Asia 'n has no interest in buying property in Oz, is so interested in 'n keen on broadcastin' potentially bad news on Oz?
Did Tezza ever get 'round ta tellin' us just how come a Kiwi wot lives 'n works in Asia 'n has no interest in buying property in Oz, is so interested in 'n keen on broadcastin' potentially bad news on Oz?
Just curious ...
Alas he's no visionary.
Take risks - if you win you will become wealthy, if you lose you will become wise
-- Our suburbanites are some of the most tapped out in the world. What is optimal? Lower prices with slimmer margins? Stable or hiigher prices with greater h'hold budget pressures?
-- Our economy is based around high cost structures. How do we maintain high producer inputs with increasingly constrained h'hold budgets? Do the suburbanites have to grin and bear the responsibility?
'N how come he says "our suburbanites" 'n "our economy" like he's an Aussie or some such?
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
'N how come he says "our suburbanites" 'n "our economy" like he's an Aussie or some such?
Can see you as a Hansonite Jethro. And yes, I have Australian birth right. No Southern Cross tats or preference for premixes so might not fit in at your BBQ, but will happily pass.
Retailers are being hit hard as consumers are choosing not to splurge this Christmas.
While almost half of consumers reported "very low" levels of stress, spending across essential and nonessential items has fallen to its lowest seasonally adjusted levels since early 2015, the NAB consumer behaviour survey found.
"What seems to be happening is they're more relaxed, but that doesn't mean that they're going to spend more," NAB chief economist Alan Oster said.
"Reading into the Christmas period, we're softer than we thought it was going to be." Shoppers are spending less than usual over Christmas, and retailers are suffering because of it. Shoppers are spending less than usual over Christmas, and retailers are suffering because of it. Photo: Jessica Hromas
Overall, Australian consumers are the least stressed they have been since mid-2012, but lingering issues have prevented them from spending more than before.
"Consumers are still concerned about the fact their wage growth is not strong, and they're still basically saying 'I'm not going to spend a lot'," Mr Oster said.
Additionally, high consumer confidence typically does not reflect retail spending.
"Most measures of consumer sentiment are not well correlated with actual spend, that's a general story and this survey is showing exactly the same thing, except it's showing it much more explicitly."
While shoppers are not buying less, they are spending less as they become increasingly price-savvy. While shoppers are not buying less, they are spending less as they become increasingly price-savvy. Photo: Fiona Morris
The most anxious spenders are middle-aged single mothers, while this quarter's most confident spenders are self-employed single men over 50, particularly from rural areas.
Regardless of how much they are willing to spend, consumers aren't expected to put fewer presents under the tree, IBISWorld senior industry analyst Nick Tarrant said.
More and more customers have turned to online shopping in search of the best prices. More and more customers have turned to online shopping in search of the best prices. Photo: Wilfredo Lee
"We're seeing not necessarily that consumers buy less gifts this Christmas, but that they'll be more discerning over where they spend it and how much they spend," he said.
Mr Tarrant also anticipates decreased spending over the Christmas holiday as part of a wider trend, and he expects department stores to be hit hardest.
Increased competition from foreign retailers such as H&M have put pressure on local retails to cut prices in Christmas sales. Increased competition from foreign retailers such as H&M have put pressure on local retails to cut prices in Christmas sales. Photo: Christopher Pearce
Shoppers are expected to spend $116.90 per capita in department stores in the lead-up to Christmas, he said. This is down 2.8 per cent from last Christmas.
"Competition from online retailers and heavy discounting in the industry will negatively affect sales this Christmas," Mr Tarrant said.
"As consumers are being more price-conscious, they're more willing to check prices online."
He cited Myer and David Jones as being most affected by price-savvy customers trading in-store experience for cost. The two retail giants account for almost 30 per cent of department store sales.
However as Christmas day nears, online shopping declines and consumers return to brick-and-mortar stores.
"Online shoppers at Christmas tend to be more organised and do everything a lot earlier, and now it's last-minute shoppers coming in store," said Mel Ward, corporate affairs manager at Myer.
Myer's online sales have increased by 74 per cent this year, but during Christmas consumers must be organised enough to shop ahead of shipping deadlines, Ms Ward said.
Despite the advantage of instant gratification, Mr Oster and Mr Tarrant see a continued decline for brick-and-mortar retail.
"When we ask them about how their trading's going, it's pretty poorly," Mr Oster said.
"I don't think it's in any retailers' interests to say that Christmas is not great, but then again I look at what we're seeing across our eftpos and various cards, and I look out and I see a lot of pre-Christmas sales on, and I think 'well maybe it's not that good'."
Price wars and the entrance of foreign retailers such as H&M into the local market pushed profit margins down, Mr Tarrant added.
Where brick-and-mortar stores can save on overheads without sacrificing customer experience is through pop-up outlets, which are becoming more common, he said.
However in general, Mr Oster believes this decline in spending is a bad sign.
"We've seen a big slowdown. If you're not going to be getting good results at this time of year, you're never going to be getting good results."
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Great. We have a bank economist talking about retail and consumer spending. Honestly speaking, these people only scratch the surface of what's going on. Xmas is a farce. For the suburbanites, it's "forced spending", so if they're cutting back, it's best to think of it in a wider context.
Only one-fifth of Australians think the national economy is in good shape, a new survey has found, in a grim assessment of consumer cheer heading into Christmas.
A quarterly survey by consumer advocacy firm CHOICE has found only about one in five people believe the Australian economy is in good shape - the lowest positive rating since its Consumer Pulse survey began in 2014.
The December results show that consumers are under increasing financial pressure and feel less positive about their household budget and the economy.
"Many Australians start to feel sharper financial pressures leading into the holiday period, as gifts and parties eat into our savings or credit balance," acting CHOICE chief executive Matt Levey said.
Australians are also reporting a drop in spending on non-essentials, with more than half of respondents tightening the belt and putting off purchase of big ticket items.
CHOICE's Consumer Pulse report found fears over the economy are the worst they have been since the survey began two years ago, with just one in four households saying they're living comfortably. "In particular, our survey shows that Australians between 30 and 49 are more likely to live off credit cards if they run out of money before pay day," Mr Levey said.
A third of people under 30 said they dipped into their savings in the last year to make it to pay day, while a quarter had borrowed money from family or friends. About 20 per cent of people aged 30 to 49 reported they deliberately missed the due date on a bill.
CHOICE's report follows the release this week of the federal government's mid-year budget review, which forecast that despite lower savings, consumers will likely boost spending on the back of low interest rates and employment growth.
However, the Consumer Pulse figures show that consumers are not necessarily feeling confident enough about their financial future to take on more debt or spending.
"MYEFO's predictions about household savings match what Australians have told our survey," Mr Levey said.
"But this won't necessarily translate into higher consumer spending. In the next 12 months, a majority of people say they are planning to cut back on discretionary and non-essential purchases."
CHOICE's Consumer Pulse report, which tracks Australians' views about the economy and household spending, was based on online responses from 1025 people aged between 18 to 75 years.
Almost half of Australians have only one months’ savings buffer to tide them over if they lose their job, a recent Rabobank survey has found.
The bank’s latest National Savings and Debt Barometer has shown that 46 per cent of the working population, the equivalent of 5.3 million employed Australians, admit they only have one months’ savings or less in the bank.
The survey also found that 20 per cent of survey respondents have no savings at all, while 13 per cent have less than two weeks’ worth. A further 13 per cent have the equivalent of less than one month.
The national survey, which questioned 2,355 Australians between the ages of 18 and 65, found that regular savers claimed to have higher levels of happiness and health, greater comfort with their finances and more control over their financial destiny.
However, of those with uncontrolled spending habits, less than 20 per cent said they were completely happy in life with less than 10 per cent being comfortable with their finances.
A total of 10 per cent of Australians say they feel like they are always in the red, up from 8 per cent last year, while stress is also on an upwards trend, with 29 per cent of those surveyed admitting to budgeting and watching what they spend. This is an increase of 4 per cent from 2011.
Commenting on the research findings, Greg McAweeney, executive general manager of RaboDirect Australia & New Zealand, said the results show many Australians needed to reconsider their spending habits.
“Australians need to urgently take stock of their personal financial wellbeing and to make wise choices about savings and savings products. This survey shows that those who have a regular and realistic savings plan, even just $5 a week, will improve their financial situation,” he said.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Thanks for posting reference to the Rabobank monitor. If 46% of the working population has 1 months savings or less, that is similar to other data I have seen. Pretty much paycheck to paycheck living. That's indicative of the tapped out financial condition of the suburbanites.
Well I'm afraid I'm not a Hansonite Tezza - Tho I do know a bloke who reckons he knows some.
Terry
23 Dec 2016, 08:33 PM
Thanks for posting reference to the Rabobank monitor. If 46% of the working population has 1 months savings or less, that is similar to other data I have seen. Pretty much paycheck to paycheck living. That's indicative of the tapped out financial condition of the suburbanites.
Got any graphs on that?
As ta when it might have bin 'significantly' different (for 'better' or 'worse')?
'N blurbs on if 'n why it should 'significantly' count/make any huge diff (for 'better' or 'worse') 'this time 'round' ... ?
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