It is certainly an interesting economy we have here in Australia at the moment. While on balance consumers seem circumspect and savings rates are high some sectors of the economy are still chugging along quite nicely.
Luxury Car Sales is one of those areas doing well according to CommSec who this morning released a report finding: “Luxury Vehicle index rose by 16.0 per cent in twelve months to January, compared with sales of all passenger cars and sports utility vehicles (SUV) which rose by just 1.4 per cent.”
That, according Savanth Sebastian, an Economist at CommSec, means that luxury vehicles now make up 7.9% of all passenger car and SUV sales.
The important point of this index is not to see what yuppies are up to and what cars they are buying. Rather, Sebastian says,
Luxury vehicle sales are a useful leading indicator for the broader economy as well as highlighting the growing wealth levels of ordinary Australians. Home prices have been rising, and similarly the number of luxury vehicle sales has lifted to record highs over the past few months. No doubt the improvement in business and consumer confidence has lifted sharemarkets and home prices, making consumers more optimistic about big ticket purchases.
So amid recent gloomy economic data in Australia this index might be a signal of better days ahead.
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