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TheFinancialReview

National Agenda

Luxury car sales up in positive sign for the economy

Luxury car sales have risen for the second month in a row, matching the recovery in the housing market, in a signal the economy could be getting back on track. 

  • Overall luxury car sales in the year to August were up 0.6 per cent following a 0.4 per cent rise in the year to July – the first month it had risen in two years. 
  • The two monthly increases come directly on the back of the same two months where house prices in Sydney and Melbourne recorded positive price growth 

Takeout

Historically there has been a connection between sales of luxury cars and house price growth (the “wealth effect” – where people spend less because they feel their wealth has contracted), so there is hope that this is a good sign for the economy as a whole 

Source: Australian Financial Review - Luxury cars following rising house prices