Fed: Retail spending to improve as long as politicians restained

AAP General News (Australia)
12-13-2006
Fed: Retail spending to improve as long as politicians restained

A new report on retailing .. suggests both sides of federal politics will have to show
restraint in their spending promises .. in the run-up to next year's election .. to prevent
consumers bearing the brunt of even higher interest rates.

Private forecaster Access Economics says it expects the fortunes of retail spending
can improve .. from now to mid-2008 .. if interest rates rise no further .. and potentially
fall from late 2007.

But it says if the coalition and Labor succumb to a bidding war .. another interest
rate rise will be likely .. hurting retail spending.

Access says stable to lower interest rates will boost consumer sentiment .. taking
pressure off house prices and providing a lift for housing construction.

Access also expects petrol prices will remain around the current lower levels for a year or so.

AAP RTV cb/sb/tm/rt

KEYWORD: RETAIL (CANBERRA)

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