Christmas may be coming early for ASX 200 retail shares with the latest consumer survey pointing to a spending spree…
The post ASX 200 retail shares lift as Aussies head into Christmas with $240bn in savings appeared first on The Motley Fool Australia. –
Christmas may be coming early for ASX 200 retail shares with the latest consumer survey pointing to a spending spree heading into the holiday season.
The 银行及金融 - 澳洲联邦银行 (ASX: CBA) today released its Household Spending Intentions (HSI) Index for November 2021, which hit its highest level since December 2019.
While the index will put a smile on the faces of ASX retailers, some are set to benefit more than others.
$240bn boost for ASX 200 retail shares
Interestingly, ASX investors may not have caught on to this just yet as just about all ASX shares in the sector rallied today. This caused the Consumer Discretionary sector to rise 1.6% when the S&P/ASX 200 Index’s (Index:^AXJO) gained just under 1%.
Expectations of a spend-a-thorn is backed by the $240 billion in savings that households have stashed away during COVID-19 lockdowns.
But as mentioned, not all retailers are likely to benefit to the same degree. The CBA’s HSI, which provides a gauge of Australian consumer spending, jumped 2.1% to 110.3 in November.
ASX 200 retail shares best placed to benefit
Within the index, spending on Transport recorded the biggest rise of 21.5%. This is followed by Travel at 14.7%, Retail at 9.6% and Household Services at 9.4%.
Holiday-deprived Aussies are also looking to spend big on their next getaway. Travel spending surged 77% since the Delta lockdown low in August this year, according to CBA. The biggest increases were for accommodations, travel agents, airlines and tourist attractions.
Other ASX retailers benefitting from spending spree tailwinds
Our best-known retailers will also be sharing in the Christmas cheer. Some of the strongest increases within this category are department stores, clothing, furniture & household equipment, electronic stores, and household appliances.
The good times could continue to roll on too as the economic recovery extends into 2022.
“The CommBank HSI Index has shown a continued and broad based recovery in consumer spending since the end of lockdowns,” said CBA Chief Economist, Stephen Halmarick.
“While we have seen sharp increases in categories like transport and travel, there is still plenty of room for further growth.”
The post ASX 200 retail shares lift as Aussies head into Christmas with $240bn in savings appeared first on The Motley Fool Australia.
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Motley Fool contributor Brendon Lau owns shares of Commonwealth Bank of Australia and Webjet Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. The Motley Fool Australia has recommended Accent Group, Bapcor, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.