News

Textile and Fashion retailers welcome RBA announcement

  • Retail sales are showing indications of recovery with consumers spending more on themselves
  • Reserve Bank confirms there are signs of potential growth in consumer spending
  • December quarter will determine if consumer confidence is back

2The Council of Textile and Fashion Industries of Australia agrees with the Reserve Bank’s decision to keep interest rates at the same rate at 2.5%. This confirms there are signs of a recovering economy and the supply channel can look forward to improved cash flow early 2014.

Council of Textile and Fashion Industries of Australia (TFIA) CEO Richard Evans says, “The decision by the RBA suggests they have seen the potential for future growth; this is possibly good news for the textile and fashion industry.”

“This decision when viewed with today’s August retail trade figures begins a dawning of consumer confidence,” Evans said. “Couple these retail figures with the recent change of government and record low interest rates, and we expect consumers will be back in the market before Christmas.”

“Retail sales growth, may be small, but it indicates consumers are coming back in the market, especially in disposable income categories, such as department stores, cafes and fashion,” Evans said. “Although these figures are welcomed, we have a long way to go to get consumers back in the market.”

“It is interesting to note consumers have a smaller spend on their houses and are now spending more on themselves,” Evans said. “This is good news for the textile and fashion supply channel which usually reflects results three to six months behind retail figures as cash flows through the channel.”

“The RBA has obviously considered the strength of the economy and can see signs of recovery,” Evans said. “Let us all hope shoppers continue to gain confidence and gift textile and fashion retailers with a prosperous Christmas season. Our manufacturers need them back in the market and today’s announcements are an indication they might be.”

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