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.

Advertisement

Share:

KEEP UP TO DATE WITH TGH

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

Advertisement

Latest News

Pontoxeniteas NSW celebrates community, culture and generosity at 2025 Winter Wonderland

Celebration swept through The Grand Roxy on Saturday, May 31, as Pontoxeniteas NSW hosted its spectacular Winter Wonderland Gala 2025.

GCM prepares for AGM as Board elections and revenue outlook take centre stage

The Greek Community of Melbourne has officially announced that its Annual General Meeting will be held on Sunday, 15 June 2025.

Raptis sisters left devastated as SA music school faces second government acquisition

Koula and Mary Raptis are “devastated and heartbroken” after learning their music school, Allegro Music, is to be acquired by the government.

Jon Adgemis vacates luxury Sydney mansion amid legal battle over his mum’s home

Disgraced former KPMG dealmaker Jon Adgemis has vacated the $20,000-a-week Point Piper mansion dubbed the "Bang & Olufsen house."

Australian Hellenic Choir delivers a stirring musical journey at ‘A Portrait of Greece’ in Sydney

The Australian Hellenic Choir captivated a packed Sir John Clancy Auditorium at the University of New South Wales on Sunday, June 1.

You May Also Like

Four tennis stars to represent Greece at Paris 2024 Olympics

Four Greek tennis stars will represent Team Hellas at the Paris 2024 Olympics in a few weeks. Find out who here.

Immigration Minister Alex Hawke sends message ahead of Greek Independence Day

Federal Immigration Minister, Alex Hawke MP, has sent a message to Greek Australians ahead of Greek Independence Day this year.

Sydney student Stephanie Papoutsis on fusing ancient and modern Greece in ‘Paralia’ designs

Sydney student Stephanie Papoutsis opens up to The Greek Herald about fusing ancient and modern Greece in her 'Paralia' designs.