From the Inside Retailing website:
An Access Economics report says it has found the key to higher retail spending over the next 12 months.
Strong jobs growth should provide a firm foundation for retail spending over this year and next, independent forecaster Access Economics says.
Last week’s retail sales data showed that spending at the malls kicked off the year in fine style, growing 1.2 per cent in January, and following a respectable, albeit below trend, 3.4 per cent growth over 2009.
Such growth comes at a time of a labour market rebound which has seen 200,000 jobs created in the five months to January, cutting the unemployment rate to 5.3 per cent from last year’s 5.8 per cent peak.
“Jobs growth may not continue at that pace – 40,000 new jobs per month – in the coming months, but nor does it show signs of rapidly deteriorating,” Access director David Rumbens said on Wednesday, releasing his latest Retail Forecasts report.
Official labour force data for February are released on Thursday.
“A greater sense of jobs security makes for a more confident consumer – one who is more likely to be spending,” Mr Rumbens said.
However, Mr Rumbens said there were plenty of factors which would stop retail sales from being spectacular, chiefly rising interest rates.
Click here to view the full article on the Inside Retailing website