Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Saturday, 9 January 2016

Retail trade trending up

Retail turnover

A decent result for Retail Trade, which increased by 0.4 per cent to a fresh high of $24.77 billion in November.

Trend retail trade has increased nicely from $21.7 billion at the end of 2012 to $24.7 billion.

Over the past 18 months total industry retail turnover has declined only once, in July last year. 

Year-on-year retail turnover growth improved to 4.3 per cent, which is well ahead of the 5 year average of 3.4 per cent.

State versus state

The long run data suggests that retail activity has largely followed house price growth, implying in turn that the economy probably needs dwelling prices to continue rising if household consumption is not to stall. 

Looking at the year-on-year figures suggests that retailers in New South Wales (+4.7 per cent) and Victoria (+6.0 per cent) have been the major beneficiaries of the "wealth effect" of rising house prices.

Slower growth has been experienced in South Australia, Western Australia, and particularly the Northern Territory, as mining construction activity tails off.

Industry groups

Over the long run much of the growth in retail turnover has been accounted for by consumables.

Although household goods retail has picked up strongly of late, department stores have struggled to main market share as online retail has taken hold.

All industry groups have seen solid growth in retail turnover over the past year, with house price growth making its impact felt here too.

Household goods retail turnover has led the way for some time now, with an impressive 6.6 per cent growth over the year to November.

Perhaps surprisingly the slowest annual growth was seen in the food retailing space, while department stores saw turnover slip in the month of November.

The wrap

Overall, a reasonable result that was in line with expectations, but one which suggested that for retail turnover to keep picking up from this level either house prices need to keep rising, or the household savings ratio will need to decline.