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National spending remains above decade average

By Greg Bell

Spending statistics are often an indicator of how well the economy is performing. If the conditions are right, then consumers and businesses alike are going to be more inclined to splash the cash, potentially leading them to buy commercial property on the Gold Coast.

The latest data from the Commonwealth Bank Business Sales Indicator (BSI) is therefore likely to prove interesting reading, as it reflects on spending levels over throughout the course of August. Economy-wide spending was up 0.2 per cent from the previous month, meaning it's still higher than the decade average.

Although this data may appear impressive, this marks the slowest pace of growth in almost three years. Over the past 12 months, growth has fallen from 7.1 per cent to 6.6 per cent.

So does this signal the start of a new trend, or are there still high hopes for the Australian economy?

Considering the economic future

Author of the BSI report and CommSec chief economist Craig James doesn't believe there should be any cause for alarm. He suggested that current economic conditions are working in the favour of businesses, which is likely to encourage further spending during the remainder of the year.

"Interest rates are low, the job market shows signs of settling and home building is underpinning spending across the economy," commented Mr James.

"Additionally, Australian businesses have reasons for optimism given a lower Aussie dollar and budget stimulus measures for the small business sector."

Conditions for businesses

As Mr James indicates, there is no shortage of factors working in companies' favour at the moment. This was reflected in the August NAB Monthly Business Survey, which showed strength is starting to be restored to the non-mining economy.

NAB's business conditions index improved five points over the course of August, bringing it to the highest level registered since 2009. Trading conditions and profitability have both increased, even though employment remains relatively low.

Some sectors are understandably going to be more optimistic than others at the moment. Clothing stores were found to have the most positive sentiment on the CommBank BSI, with confidence rising 1.1 per cent over the course of August.

This renewed confidence is just what businesses need to think more carefully about retail leasing on the Gold Coast, as a more positive outlook gives the impetus they need to be more forward thinking.

Other sectors shown to have thrived last month include transport and professional services, both of which posted gains of 0.7 per cent on the BSI.

Queensland spending is on the rise

The good news for the Gold Coast's commercial property market is that Queensland is one state where sales have risen. The BSI registered a rise of 0.4 per cent across the state in August, making it one of the strongest increases in the country.

On an annual basis, spending in Queensland was up 6.7 per cent. Three states and territories saw their sales fall from the previous year: Victoria, New South Wales and the Northern Territory.

Time to consider retail leasing on the Gold Coast?

With economic conditions improving and sentiment rising, now could be a good time to think about retail leasing on the Gold Coast. If the situation continues its upward trend, it's likely that competition will rise further, so it's wise to make the most of the market in its current state.

The Ray White team can guide you through the process and ensure you have access to some of the most lucrative properties the city has to offer. Don't delay in getting in touch to find out more about this highly desirable part of Queensland.

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