Any solidarity that a market can produce in these economic times builds consumer confidence. New motor vehicle sales were up for the first time in a decade, showing signs of economic recovery. These new sales figures have sparked a quiet confidence in a long awaited economic recovery.
New Car Sales
The new motor vehicle sales figures showed an almost 8.5% increase this past April, and was the single largest automobile sales month since December of 2000. In the midst of a worldwide recession, any economic recovery inspires consumer confidence that the Australian financial situation is improving. Consumer confidence is the cornerstone to a healthy economy because without that confidence Australian’s are not buying anything but the necessities. The housing and automobile market is key to the recovery process and any increase in either industry dictates that trends are moving towards improvement.
Western Australia
Western Australia had the largest new automobile sales in the country with an increase of nearly 27% in the month of April and 47% for the year to date. This is the largest increase in sales since data has been kept on the subject. It is consumer confidence of this stature that indicates economic recovery is upon the country. New motor vehicle sales are the number two indicator of financial stability behind the housing market, making a most welcomed statistic for the country as a whole. Without sales increases there can be no economic turn around.
“Quiet Confidence”
Although all data suggests that the economy of Australia is improving through new sales figures such as those of the vehicle sales, business owners and citizens alike are keeping their enthusiasm in check until further economic stability presents itself. The recession has been long and ongoing making any good news welcome, but guarded. If consistent data presents itself throughout different markets, than confidence levels will continue to increase and Australia may be able to shred the remnants of the recession.
The increased consumer confidence and increase in new motor vehicle sales is attributed to a countrywide increase in job security. Australian’s have regained control of the economic crisis by returning industry and employment opportunities to the country. Now that consumers can have a sense of job security and long term employment, it reduces inhibitions to not purchase anything.
This increase in job security has led to an increase in home and auto sales, resulting in increased sales numbers. This is listed as a direct correlation between economic and financial security that is trending upwards, which will pull Australia back into a reliable market economy. When new data is presented it is speculated to also be elevated, which will further increase consumer confidence and in turn present a sense of further economic recovery.
