regional consumer spending outlook & market opportunity the near future

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Regional consumer spending outlook & market opportunity The near future

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Page 1: Regional consumer spending outlook & market opportunity The near future

Regional consumer spending outlook & market

opportunity

The near future

Page 2: Regional consumer spending outlook & market opportunity The near future

2010 was good year for Regional…

Page 3: Regional consumer spending outlook & market opportunity The near future

• Regional won the election!• Infrastructure - public and private –

already online • Regional consumer spending power solid

through and post GFC

2010 was good year for Regional…

Page 4: Regional consumer spending outlook & market opportunity The near future

Source: Foreseechange 2010

The foreseechange survey has been the most accurate forecast on consumer spending over the past five years

Willingness and ability to spend

Page 5: Regional consumer spending outlook & market opportunity The near future

Source: Foreseechange 2010

Q: How would you allocate $1000 windfall ?

Spend, save or pay debt?

Willingness to spend…

Page 6: Regional consumer spending outlook & market opportunity The near future

Source: Foreseechange 2010

A: Regional and metro response identical

Spend: $235 Save: $440 Pay debt $325

Willingness to spend…

Page 7: Regional consumer spending outlook & market opportunity The near future

Regional consumers’ willingness to spend remained very steady through GFC compared to metro volatility

2005 2006 2007 2008 2009 20100

100

200

300

400

500Metro Regional

Dollars allocated for spending from discretionary $1000

Source: foreseechange 2005 - 2010

$

Page 8: Regional consumer spending outlook & market opportunity The near future

Willingness to save at record levels showing consumer caution and reflecting lower interest rates

2005 2006 2007 2008 2009 20100

100

200

300

400

500

Metro Regional

Source: foreseechange 2005 - 2010

Dollars allocated for saving from discretionary $1000

$

Page 9: Regional consumer spending outlook & market opportunity The near future

No worries, comfortable, struggling or broke?

Ability to spend…

Source: Foreseechange 2010

Page 10: Regional consumer spending outlook & market opportunity The near future

Metro Regional0

10

20

30

40

50

60

70

80

90

100

5.9 7.3

40.4 42.7

29.0 24.5

24.8 25.7

Half of all Australians say they are able to spend on discretionary items ... no significant change YOY

% o

f Po

p.

No Worries “Few financial concerns being able to both save and buy what I want”Comfortable“Afford to spend on the extras that make life worthwhile”Getting By“Manage to meet expenses but nothing left over”Broke“Never seem to have enough money”

Source: foreseechange June 2010 & October 2010

Page 11: Regional consumer spending outlook & market opportunity The near future

Why has regional spending been more stable?

• Average household income only 10% below capital cities – and growing faster

• Median regional house price up to 50% below capital city

• Less debt & growth in local economies

Page 12: Regional consumer spending outlook & market opportunity The near future

Consumer spending forecast for 2011 is to match current levels

Regional less at risk from interest rate rises

Foreseechange 2010Author Charlie Nelson