AUSTRALIAN HOUSEHOLD GOODS SALES COOL OFF.
The heated growth noted in Australian household goods over the past few years will cool off as 2004 progresses, but overall private sector demand for goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. will continue to grow.
Australian real household wealth has risen impressively since 2000 thanks to a precipitous increase in property values and strengthening of the national currency relative to the U.S. dollar. However, economists generally agree that stability of that newfound new·found
Recently discovered: a newfound pastime.
Adj. 1. newfound - newly discovered; "his newfound aggressiveness"; "Hudson pointed his ship down the coast of the newfound sea" wealth is threatened by the high proportion of real estate in overall family assets. Some predict that there will be a substantial decline in property values as the real estate market cools off and that it will cause Australian household wealth to drop over the next couple of years.
A more likely scenario is that growth in real estate values will taper off Verb 1. taper off - end weakly; "The music just petered out--there was no proper ending"
fizzle, fizzle out, peter out
discontinue - come to or be at an end; "the support from our sponsoring agency will discontinue after March 31"
2. this year as demand fades. Interest rates started to rise late in 2003 and will probably continue to do so as 2004 progresses. That, in turn, will contribute to year-on-year declines in residential real estate starts that began to manifest themselves during the first half of this year.
Australian consumer confidence slipped slightly early this year but it is unlikely to drop enough to undermine high-end spending. As a result, sales of automobiles and high-end services should continue to experience modest year-on-year growth approaching 5 percent during the second half of 2004.
Household appliances and electronic products should show a mixed sales growth pattern this year and in 2005. Appliance sales have experienced nearly three years of healthy gains, but the rate of growth will cool considerably starting in the third quarter of 2004. The deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed.
early deceleration pattern will be most noticeable in major appliances A major appliance is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, food preservation, or cleaning, whether in a household, institutional, commercial or industrial setting. where year-on-year gains will fall into the range of 2 to 4 percent.
Australian retail sales have not yet lost their strong upward momentum, which should persist through at least the third quarter of this year. Demand for household electronic products and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment should remain firm as consumers seek technology upgrades.
Household spending on non-durable goods continues to grow, with high-end food products leading the way. Consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. on beef increased 5.7 percent during 2003. Chicken is gaining in popularity due to increasing health awareness. Over the past year, the average Australian consumed about 35.5 kilograms of chicken. This year, per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. chicken consumption will surpass that of beef for the first time in Australian history. One factor that has contributed to steady growth in chicken consumption is the 38 percent decline in Australian chicken prices registered over the past 20 years. Sales of fresh fruits and vegetables should also gain upward momentum this year.