Chamber Talk with QT Better Business columnist Brett Kitching.
Chamber Talk with QT Better Business columnist Brett Kitching.

Finally, election result inspires increased consumer confidence

THERE are signs already that consumer confidence is on the rise after the long-awaited federal election result.

Just two weeks after the election, there is a strong sign of higher confidence through firstly somewhat of a bull market on the stock exchange.

The Australian All Ordinaries index last week touched on 5300 points which, as previously reported, is the highest level for five years - and there seems no sign of this stopping as buying is continuing in most areas, especially stocks with higher dividends than the current interest rates, and mining stocks.

As also reported last week, this is terrific news for long suffering equity-based superannuation fund holders.

The upward movement in shares in 2013 is the first good sign for five years in this market.

Another unlikely sign of higher consumer confidence was a report on ABC News last week of increased clearance rates and values at an auction of used mining equipment at Yatala.

This auction resulted in sales of $30 million which was a surprise for many. A further sign of increased activity and confidence is the property market in Ipswich.

Signs are coming from agents in the region that there is a significant increase in buyer activity, something that would normally lead in time to price increases as clearance rates increase.

These signs of increased buyer activity commenced prior to the election and appear to be gaining momentum since the election.

This surge in confidence is a normal phenomenon as shown after the Queensland state election last year, as well as last year's US election, both of which saw increased confidence as a result of certainty immediately follow.

In the United States, the Federal Reserve last week decided to continue with their stimulus package which had an impact on Australia.

This impact was that the Aussie dollar surged as a result of the unexpected action far from our shores.

All of these positive indicators bode well for a region like Ipswich, one that has a bright and exciting future based upon high population growth, high employment growth, and increasing services development included in the outlook.



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