Retail growth promised as spending slows
Retail spending growth is expected to remain strong despite a slowdown after the tough federal budget.
An index compiled by the Australian Food and Grocery Council (AFGC) and pallet company CHEP, based on economic data and supply chain activity, shows spending in the three months to June was up 5.2 per cent on the same time a year earlier.
The rate of growth is much higher than what the index showed through 2013, when growth was between two and four per cent.
But sales growth has slowed from earlier in 2014.
The slowdown was mainly caused by the impact of the federal budget on consumer confidence, AFGC chief executive Gary Dawson said.
Growth in the current quarter should be around five per cent, which will please retailers, he said.
"Interest rates continue to remain low, and the labour market is picking up, so our expectation is 2014/15 will be a good year for retailers," Mr Dawson said.
