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