Regional consumer spending outlook & market
opportunity
The near future
2010 was good year for Regional…
• Regional won the election!• Infrastructure - public and private –
already online • Regional consumer spending power solid
through and post GFC
2010 was good year for Regional…
Source: Foreseechange 2010
The foreseechange survey has been the most accurate forecast on consumer spending over the past five years
Willingness and ability to spend
Source: Foreseechange 2010
Q: How would you allocate $1000 windfall ?
Spend, save or pay debt?
Willingness to spend…
Source: Foreseechange 2010
A: Regional and metro response identical
Spend: $235 Save: $440 Pay debt $325
Willingness to spend…
Regional consumers’ willingness to spend remained very steady through GFC compared to metro volatility
2005 2006 2007 2008 2009 20100
100
200
300
400
500Metro Regional
Dollars allocated for spending from discretionary $1000
Source: foreseechange 2005 - 2010
$
Willingness to save at record levels showing consumer caution and reflecting lower interest rates
2005 2006 2007 2008 2009 20100
100
200
300
400
500
Metro Regional
Source: foreseechange 2005 - 2010
Dollars allocated for saving from discretionary $1000
$
No worries, comfortable, struggling or broke?
Ability to spend…
Source: Foreseechange 2010
Metro Regional0
10
20
30
40
50
60
70
80
90
100
5.9 7.3
40.4 42.7
29.0 24.5
24.8 25.7
Half of all Australians say they are able to spend on discretionary items ... no significant change YOY
% o
f Po
p.
No Worries “Few financial concerns being able to both save and buy what I want”Comfortable“Afford to spend on the extras that make life worthwhile”Getting By“Manage to meet expenses but nothing left over”Broke“Never seem to have enough money”
Source: foreseechange June 2010 & October 2010
Why has regional spending been more stable?
• Average household income only 10% below capital cities – and growing faster
• Median regional house price up to 50% below capital city
• Less debt & growth in local economies
Consumer spending forecast for 2011 is to match current levels
Regional less at risk from interest rate rises
Foreseechange 2010Author Charlie Nelson