Fed: Retail boom could dry up next financial year: report

AAP General News (Australia)
08-30-2004
Fed: Retail boom could dry up next financial year: report

A new report says the boom in Australia's retail sector could start to dry up next
financial year.

Access Economics' latest retail report forecasts real -- or inflation-adjusted -- retail
turnover to grow by 5.1 per cent in the 2004/05 financial year.

But the growth is expected to ease to two per cent in 2005/06.

The report says retailers are expected to enjoy excellent trading conditions well past Christmas.

The $10 billion worth of tax cuts and family benefits from the federal government and
increases in real wages growth should also aid retailers.

But the sector's growth could be hit by the drying up of the capital gains homeowners
enjoyed from the housing boom, higher mortgage repayments and the nervousness people have
about their debt levels.

AAP RTV bt/lm/psm/

KEYWORD: RETAIL (CANBERRA)

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