December boost for economy-wide spending

By Greg Bell

Economy-wide spending experienced a seasonal boost throughout December, with positive knock-on effects for a range of different sectors. The December Commonwealth Bank Business Sales Indicator (BSI) pointed to expansion throughout the month, with the strongest results seen in the business services sector.

Aside from the obvious benefits this brings for the national economy, it also has the potential to boost interest in commercial property on the Gold Coast.

Businesses have room for optimism

Chief economist at CommSec Craig James believes Australian firms have plenty to be optimistic about at the moment. He indicated that retail leasing on the Gold Coast could be in especially high demand in light of the Christmas spending data.

"While we saw growth in the retail sector, many sectors across the economy are also posting healthy growth," Mr James commented.

"With spending growth remaining above inflation, positive signs remain for business in 2016."

The seasonally-adjusted measure of the BSI marked a 0.7 per cent increase in December. This helped cancel out some of the 0.9 per cent decline seen during the previous month, showing that the economy is starting to move in the right direction.

Spotlight on Queensland

The BSI revealed that South Australia was the only region to have experienced a fall in sales throughout the course of the month. Queensland's growth registered at 0.3 per cent compared to November, or 6.8 per cent higher than 12 months earlier.

This willingness to spend has the potential for a positive impact on commercial property sales. As companies and consumers plan to increase their expenditure, this could translate into more purchases along the Gold Coast and other parts of Queensland.

Confidence in different sectors

While the strength in spending growth seems to be largely uniform across the country, the same can't necessarily be said for the various sectors and industries. Roy Morgan Research's Business Confidence Index for December has recently been released, and it shows the extent of these discrepancies.

The index declined 4.2 points in December, following on from the 0.6-point fall seen in November. Analysts believe this is partly due to the political uncertainty that now faces the nation after the cooling off period surrounding Malcolm Turnbull's election has ended. 

Norman Morris, industry communications director at Roy Morgan Research, explained that agriculture, accommodation and construction are among the industries to have thrived over the course of December. Meanwhile, the likes of professional services, wholesale and manufacturing had less positive fortunes.

"Over the last month there has been some decline in confidence among micro and small businesses, while medium and large businesses have shown increased confidence," commented Mr Morris.

Larger companies may therefore be in the market to buy commercial property on the Gold Coast, especially if they experienced a strong festive trading period. Sentiment will play a key part in this, as the more positive businesses are, the more inclined they will be to make an investment.

Cash in on your positivity

Now could be the ideal time to think about a commercial property investment, particularly if you've benefited from the upswing in confidence and spending that these two studies suggest. You will need an experienced agent on your side to make this happen, which is where we come in.

Ray White Commercial Gold Coast has years of experience in the local market and could be just what you need to find your ideal premises. We recommend that you get in touch to discuss your options and find a piece of real estate that really fits the bill.

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