Consumers and retailers in Australia are growing concerned about the results of this week’s federal budget, according to the latest survey from Roy Morgan Research.
Released on May 9, the Roy Morgan report revealed the vast majority of individuals in Australia believe the impending federal budget will not benefit them or their family. When separated by their political beliefs, 72 per cent of Liberal supporters are concerned about the outcome of the budget, compared to a massive 92 to 97 per cent of all other party followers.
Furthermore, business owners are facing similar levels of uncertainty and unrest, with 80 per cent of micro-businesses forecasting the budget will not benefit them. Large businesses are more positive about the impending budget, yet the majority (67 per cent) still believe the budget will not improve their standing.
This result follows reports that retail trade figures increased month on month in March this year. The Australian Retailers Association (ARA) revealed the 0.1 per cent growth resulted in a 5.6 per cent year-on-year rise, compared with March 2013.
While 0.1 per cent does not seem like a lot, ARA Executive Director Russell Zimmerman reminds Australian retailers that any increase is encouraging following strong trading periods during the January holiday season.
In particular, retail trends saw certain industries increasing at rates much higher than other sectors. The food services industry was one such sector.
“Australians love a good coffee and dining out with friends and family, and consumers certainly made the most of the final summer days in March with cafes, restaurants and takeaway food services experiencing steady growth at 1.1 per cent and food retailing at 0.5 per cent,” Mr Zimmerman revealed.
While growth in the retail sector is steady, results may not be as positive this month as business owners prepare for a less-than-positive federal budget announcement tomorrow, Tuesday May 13.
“There’s no doubt all Australians are expecting a tough federal budget in less than a week. Retailers will be looking for the federal government to consider the implications new taxes and cuts to welfare payments might have on consumer sentiment over the long term,” Australian National Retailers’ Association Chief Executive Office Margy Osmond expressed in a May 7 media release.
If you’re concerned about how the results of the federal government may affect your store, you can speak with a retail consultant about preparing your business finances for the future.