China’s demand for commodities, inbound tourism as a result of strong economic growth in Asia, and growth in Australian household wealth has contributed to a modest recovery of retail turnover in Australia.
Figures published in the 26th edition of the quarterly AFGC CHEP Retail Index this week show signs of recovery.
This follows a sustained period of softening growth over 18 months that has reflected uncertainty in Australian and global economies.
The index, which uses transactional data from CHEP pallet movements to provide a lead indicator of Australian Bureau of Statistics retail trade data, predicts year-on-year growth in Australian retail turnover of 4.6 per cent for the month of June 2017 and 3.6 per cent year-on-year for the June quarter – which is up from a year-on-year rise of 2.6 per cent to March 2017.
This is projected to continue with year-on-year growth figures for the months of August at 4.2 per cent and September at 4.1 per cent respectively.
Despite consumer caution and a competitive retail environment, Australia’s economic outlook over the coming 12 months is characterised by modest improvement due to connections with Asia and growth in Australian household wealth.
Australian Food and Grocery Council CEO Tanya Barden said catered food had been driving most recent improvements.
President of CHEP Asia Pacific, Phillip Austin, added: “The reliability and efficiency of the supply chain continues to be a major factor in the success of Australia’s retail sector. Retail supply chains are already evolving to be more effective and sustainable in the face of increasing competition, emerging technologies and ever-changing consumer needs. This may accelerate as firms look to capitalise on the stronger momentum forecast by the index.”
