By Martin Vedris
SYDNEY, NSW: Consumers continue to spend on technical consumer goods with a massive 16 per cent spike in value growth in June alone, according to the latest GfK TEMAX report, but the ‘recession monster’ is still hiding under the bed.
In its TEMAX report for Q2 2009, GfK reported that the value growth of technical consumer goods averaged 8.8 per cent for the quarter (2009 versus 2008), with the June growth rate of 16.2 per cent being the highest recorded rate for any individual month so far this year.
However, to all those bored of talk of a pending recession: we’re not quite in the clear yet. GfK issued a caution that the remainder of 2009, and most of 2010 could be tough for consumer durable suppliers and retailers alike, as the fiscal stimulus packages run out, interest rates remain flat, and unemployment is still forecasted to rise.
While many consumer electronics retailers have felt the pinch this year though, it could have been a lot worse — the Australian market is quite healthy.
According to GfK’s TEMAX report, the clear driver of the overall sales growth trend in Q2 was the IT sector, achieving a year-on-year value growth of 32.3 per cent. Also showing positive returns were small domestic appliances, with 9.3 per cent growth, and telecoms, with 7.4 per cent continued to perform well. The consumer spend on photographic products, consumer electronics and major domestic appliances, however, was not as strong, with growth in the range of two to three per cent for the quarter.