George Tharenou on consumer rebound as NSW economy reopens

·

Investors may be underestimating a rebound in consumer spending when the economy reopens from COVID restrictions and will seek clarity from corporate annual general meetings this month, The Australian reports.

A UBS survey of 1000 people in late August and early September was even stronger than a similar survey in the June quarter survey despite strict lockdowns in NSW and Victoria.

Combined with resilient activity and labour market data, and less uncertainty on economic reopening, the consumer survey led UBS to upgrade its forecast for real consumption in 2022 to 4.1 per cent year on year – 0.5 per cent above consensus – while raising its GDP forecast to 3 per cent.

UBS chief economist, George Tharenou.

“Distinct to the first ‘reopen trade’, when high-income earners drove the bullish pivot in consumer intentions, in the September quarter, the lift is driven by middle and lower-income earners, to near their pre-Covid level,” UBS chief economist, George Tharenou, told the newspaper.

Mr Tharenou said his survey showed consumers were “close to a turning point in shifting spending from goods to services” – good for some companies but bad for others.

A rise in fiscal support to exceed the lockdown cost of about $2 billion a week also caused a “positive income shock” for lower and middle-income households, and the house price boom reinvigorated goods spending intentions, he said.

Based on the consumer survey, Mr Tharenou listed housing-­related goods, mobility-sensitive, and ESG (environmental, social, governance) as his top three Australian stock themes.

Cretan Convention - Web Banner

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Democracy on the big screen: Youth shine at the 13th Greek Student Film Festival

13th Greek Student Film Festival - staged within Sydney's 30th Greek Film Festival - filled the cinema with laughter and plenty of Greek.

Panayiota Dimopoulos’ OXI Day artwork takes pride of place on The Greek Herald cover

Panayiota Dimopoulos from Oakleigh Grammar designed The Greek Herald’s OXI Day cover, capturing the shared history of Greece and Australia.

Greek and Cypriot leaders honour OXI Day with messages to Australia’s Greek diaspora

Greek and Cypriot politicians and diplomats have issued messages to Australia’s Greek diaspora ahead of the OXI Day celebrations.

Greek Film Festival wraps 30th year with a triumphant Sydney finale

The curtain fell on the 30th Greek Film Festival in Sydney on Sunday night with a sold-out screening of Athens Midnight Radio.

Pan Macedonian Federation of SA launches the 44th Dimitria Greek Festival

On Friday, October 24, the Pan Macedonian Federation of South Australia officially launched the 44th Dimitria Greek Festival.

You May Also Like

Greek Deputy Foreign Minister Ioannis Loverdos strengthens ties in Adelaide visit

Greece's Deputy Minister of Foreign Affairs for Greeks Abroad, Ioannis Loverdos, is visiting Adelaide, South Australia.

Powerful call for justice as Emanuel Comino AM gives Parthenon Marbles lecture in Canberra

A packed Apollo Room at the Hellenic Club of Canberra bore witness to a lecture by cultural heritage advocate Emanuel J. Comino AM.

Academic and artist join forces to retell Bouboulina’s story

Two women from the Greek diaspora, Dr April Kalogeropoulos-Householder and Efrossini (Effie) Chaniotis, have joined their creative forces to honour Laskarina Bouboulina.