ANZ Smart Choice Super Investor Update : Member Update Winter 2013
How has spending changed? Some of the more interesting trends that have emerged since the Global Financial Crisis (GFC) are: Paying down debt -- following the GFC, Australians started to pay down debt more quickly and save more. The net household saving rate peaked at 12% of disposable income in 2011, helped by falling interest rates. It later fell back to around 10%, possibly due to the 'wealth effect' from rising property and share values (as some households felt wealthier and hence saved less).* Offshore spending -- the strong Australian dollar has seen a rise in overseas travel and online retail spending. Slower domestic retail revenue growth reflects both the online leakage and subsequent discounting. The subsequent decline in retailers' revenues and margins has seen their share price under-perform the broader share market. Aspirational spending -- social commentators and politicians believe strongly-held aspirations motivate spending. The examples cited are the extensive borrowing pre GFC to buy or improve residential property and the rise in private school enrolments. Heading up, down or sideways? ANZ forecasts consumption growth of just over 2% for 2013, picking up to 2.6% by the end of 2014. This will be good for the Australian economy as it reduces its reliance on mining investment to support growth. 9 * Source: "Australian Economic Weekly, A Close Look at Household Consumption", ANZ Research, 25 March 2013.
Member Update Autumn 2013
Member Update Spring 2013