Feeds:
Posts
Comments

Posts Tagged ‘Retailers’

Australians need to save more for the economy to avoid a more rapid run-up in inflation, triggered by nation’s rising terms of trade, the Reserve Bank said today.

“In putting together the Reserve Bank’s forecasts it has been assumed that more of this boost to income is saved than was the case in the earlier boom in the terms of trade,” RBA assistant governor Phillip Lowe.

“This reflects two factors. The first is the different position of the federal budget and the second is the more cautious approach to spending currently being displayed by the household sector.”

The federal budget, handed down this week, contained no major increases in public spending and is expected the return to a surplus by 2012-13.

In that time, the RBA forecasts Chinese steel production will continue to drive demand for Australian iron ore and coal strong, boosting the nation’s terms of trade.

Terms of trade are the prices of a nation’s exports relative to its imports.

“If this lift in saving does not occur, then demand in the economy could well be stronger than forecast, and this would put additional pressure on capacity,” he said.

A lack of spare capacity in the economy has pushed the year-to-March inflation figure to 2.9 per cent from 2.5 per cent in the year to December, which surprised the RBA, Mr Lowe said.

“Disinflationary forces in the economy are not quite as strong as previously expected, largely because the economy has performed better than previously expected,” Mr Lowe said, in the speech delivered to Colonial First State Investment Forum in Sydney.

The RBA expects inflation to fall only to 2.75 per cent later this year, less than originally anticipated after the release of the March data.

Retail sales have remained lacklustre since the middle of last year, after the end of the government’s cash stimulus grants to households during the financial crisis. Six interest rate rises since October have also cut into demand at retailers, with a number of businesses including Fantastic Furniture, Clive Peeters and Woolworth’s flagging weaker sales ahead.

The RBA lifted interest rates to 4.5 per cent his month, creating more headwinds for shoppers. The latest rate rise added another $46 to the average monthly repayment cost on a $300,000, 25-year mortgage.

Investors currently foresee no chance of an interest rate rise in June, but predict the official cash rate will be at 5 per cent within a year, according to Credit Suisse data.

The central bank predicts 3.25 per cent economic growth this year accelerating to 3.75-4 per cent growth in the next couple of years, amid rising prices for commodities exports.

Source  :  www.watoday.com.au

Read Full Post »

Retailers are boosting staff numbers in anticipation of an improvement in consumer spending, according to the Australian Retailers Association.                 retail

The industry group’s executive director, Richard Evans, said surveys of association members showed a 12 per cent jump in employment for small and medium-sized retailers this month, painting a much more positive picture than figures released by the Australian Bureau of Statistics earlier this month.

The number of people employed in the retail sector fell by less than 0.1 per cent last month compared with February, on a seasonally adjusted basis, but the ABS also reported an increase in underutilisation—the proportion of the workforce that is either unemployed or not working as many hours as it would like.

The rate of underutilisation among female workers was 9.1per cent last month, compared with 6.4 per cent for men, which the ABS attributed to the larger proportion of women working in industries with high levels of casual employment, such as retail.

However, Mr Evans said most retailers were holding on to skilled staff in preparation for rising demand, with 68 per cent reporting no change in employment levels in the past quarter.

“A further 16 per cent of retailers actually increased their number of staff during the same period,” he said.

“Retailing works in cycles, and although the sector has experienced a downturn, good retailers are doing their best to hold on to skilled staff as consumer confidence continues to grow and a new type of consumer emerges.”

The same trend was in play among the bigger retailers, with David Jones boosting staffing levels around the Mother’s Day shopping period after the delivery of the federal government’s fiscal stimulus package in April led to a sharp rebound in sales.

Mr Evans said the stimulus package and lower interest rates meant most consumers had more cash available to spend, but “negative and fear-filled commentary” had fuelled a tendency among consumers to cut discretionary spending in favour of saving or paying off debt.

This meant shoppers would be in a better position to spend when confidence picks up again—with the ARA forecasting an improvement as soon as the September quarter.

Source  :  www.careerone.com.au

Read Full Post »

Bulla ice cream is being pulled from WA supermarket shelves after plastic pieces were found in some tubs.         eggnog-ice-cream

In what it dubs a “precautionary measure”, Regal Cream Products has recalled 2L tubs of its Bulla Creamy Classics – Cookies & Cream flavour with a best before date of October 10, 2010.

No other dates or products are affected by the recall.

Anyone with the specified ice cream should not eat it, but return it to the place of purchase for a full refund.

Retailers with affected ice cream can call Regal Cream Products on 1800 001 332.

Source  :  www.watoday.com.au

Read Full Post »