Tracking surveys of consumers in November 2016 has revealed a brighter outlook for consumer spending growth in Australia and for the economy generally.
There has been an increase in consumer willingness to spend, which bodes well for spending in the first half of 2017. But the increase has not been uniform. In particular it is people aged over 45 who have lifted their willingness to spend. Amongst consumers aged under 45, willingness to spend has dropped.
This has obvious implications for target marketing.
Leading indicators for consumer spending growth, including retail sales, and for house price inflation are based on the tracking surveys.
A higher proportion of consumers feel they have money left over after meeting their commitments and expectations about future finances are improving.
Consumers are also less pessimistic about the economy overall and about unemployment. Unlike Bill Shorten, they see it as unlikely that Malcolm Turnbull will be replaced in 2017.
Our Consumer Pulse + Leading Indicators report and Wisdom of the Masses for 2017 report are available at www.foreseechange.com.au.