first stimulus package a roaring success

Say retailers....ABC Online...
New data has found post-Christmas retail spending was stronger than expected, buoying hopes that consumer confidence is improving.

Figures from the Australia Retailers Association shows shoppers spent $6.5 billion between Boxing Day and the end of January.

That figure is $200 million more than anticipated.

The Association's Richard Evans says many people have waited before spending the Federal Government's stimulus handouts worth $10.5 billion.

"Many of the people who received the Rudd Government stimulus package didn't until just before Christmas and therefore would have spent it after Christmas," he said.

"To expect it to be spent immediately was asking too much and I think we'll see the Rudd stimulus package flow through the economy from January, so we'll see it for the next two months."

Mr Evans says heavy discounting has helped but says the tough times are not over.

"Retailing operates around six months before the rest of the economy," he said.

"We're expecting a return to growth from May/June this year, September quarter.

"So it's going to be a tough year for many folks, but we've got to do this together and hopefully consumers will get confidence to re-enter the marketplace."

Mr Evans says retailers are doing it tough but some things are working in their favour.

"Most Australians are working, most - if they're with mortgages - have had decreases in their interest rates, less fuel prices," he said.

"I think they're confident, they're slowly getting some confidence back and they're re-entering the market place."

Dave R.