Regional consumers set to outspend metro counterparts
Consumers in regional cities seem set to be the engine for the economy in the coming months, a new study of spending sentiment suggests.
According to a survey created by Charlie Nelson of research company forseechange, people living in regional cities are more likely than those in metro and rural areas to have disposable income and be willing to spend it.
The survey asked consumers in each of those three population types what they would do with a hypothetical $1000 dollars.
For metro consumers, the amount they would spend fell from $244 last year to $213 this year. The rest is accounted for in saving and loan repayments.
For rural consumers, the amount they would spend rose fractionally from $204 to $207.
But regional city consumers saw a bigger jump – up from $227 to $255.
The research was based on 1200 telephone interviews. The Regional Pulse report was commissioned by trade body Regional TV Marketing.
Brian Hogan General Manager of RTM claimed “For the next six months at least, regional consumers will be the ones with money to spend until the broader national recovery takes hold.”
Nelson added: “What differentiates regional consumers is that they have been steadily decreasing their need to pay off debt and therefore have been able to increase the amount of money available for discretionary spending.
“Not all Australians are unwilling to spend. There are still a reasonably high proportion of consumers who are both willing and able to spend. Again the divergent trend for regional is that this group is increasing while nationally it is in decline.”
Regional TV Marketing’s presentation:
ends
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Totally agree with this research. I’ve got bucket loads of cash and I’m going to spend big time all the way up to xmas.
Life’s good in Newcastle!
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I’d move there given half a chance.
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Not surprised at all by these findings – but am surprised so many businesses continue to ignore growth in sales opportunities in regional Oz.
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