Beyond just the usual economic numbers which may not be detailed enough, retail sale is a good indicator of whether or not the market is full of positive people or negative ones. If we are not so positive with the future outlook, we tend to save our money instead of spending it. OR it may also mean people will continue buying and spending more of their income instead of saving? Their argument may be that property prices are already too high anyway. Thus saving a couple of hundred ringgit a month is not going to help much. Earlier article here: Are we Earning, Saving, Investing and Preserving Perhaps we look at what is happening this year till end of 2019 instead.
Article in thesundaily.my Independent retail research firm Retail Group Malaysia has revised upwards its projected retail sale growth of the Malaysian retail industry for this year to 4.9%, from 4.5% estimated in March 2019. It said, “Despite the weak economic environment from both internally and externally, the higher growth expected during the second quarter of 2019 is mainly due to the Hari Raya period. This largest festival in Malaysia is celebrated earlier this year as compared to 2018.“ Its estimate for the last quarter of this year is maintained at 5.8%. This is because school holiday, year-end festival and expected higher economic activities should stimulate consumers’ spending during this period. The growth does not cover all sectors. Supermarket and hypermarket operators will not see improvement in their business in the coming months. They expect to remain in the red zone with a -7.4% growth rate for the second quarter of 2019. Double digits are possible too. Retailers in the pharmacy and personal care sub-sector remains optimistic of their businesses with a strong growth rate of 15.2% for the second quarter of 2019. Article in thesundaily.my
These days online purchase is becoming common and I think many predicted that it will kill the offline retail. My earlier article here: Online does not kill malls I really hope everyone looks at the more advanced nations where the malls continue to prosper, despite the fact that online retail sale will always be rising no matter who does the survey or research. As for Malaysia, positive numbers are good indicator that the job market remains strong. When people have jobs, they have money to spend. It would be better for them to balance between spending and saving but then again, one is an instant gratification while another may make them look bad among their peers. Tough choice indeed. Happy buying.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
<Featured Image is courtesy of Stock Photos from Dean Drobot >
Next suggested article: Best property investment plan. Buy Low, Sell High.