Australians still buying big ticket items – despite doubts

Australians are still prepared to spend heavily on big ticket items, even though there have been signs that consumer confidence has weakened recently.

This is confirmed in fresh data on home building approvals and new car sales.

Naturally, a few stimulus packages  help, especially at a time of global economic crisis.

And the Federal government’s stimulus packages boosted both car and home sales, with extra help for first home buyers and a tax break for business people buying new vehicles.

As the Federal Treasurer, Wayne Swan, pointed out yesterday, both of those measures have now been removed.

The Statistician  reported yesterday that home building approvals, throughout Australia, rose by 5.9 per cent in November.

That was well above expectations.

And industry figures showed that new vehicle sales last month were 15 per cent higher than those of December 2008.

So Mr Swan was upbeat, when he met reporters in Brisbane.

“Economic stimulus has seen Australia protected from the worst impacts of the global recession,” he said.

“…in particular you can see that in the new car sales data that’s out today – 940,000 new car sales over the year, and in the month of December we had record new car sales,” Mr Swan added.

“..what that points to is the impact in particular of the Small and General Business Tax Break, which concluded at the end of last year,” he said.

” Our stimulus peaked in the middle of last year – and this year the stimulus is gradually withdrawn as the economy gradually recovers.” he said.