Australian sharemarket analysis: here’s why consumers are outspending the ASX’s companies

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The difference between corporate and consumer spending was perhaps best reflected in the earnings results from travel agents.

Already a subscriber?Every company reporting season always unearths interesting stories and highlights some underlying economic trends, and last month was no different.

I’ll certainly be watching closely to see if higher interest rates and cost control measures start to spill over into the consumer sector. Full approval should occur closer to mid-year. After the sale, the very strong capital position of Suncorp should allow for strong dividends and capital returns. Healthcare, and in particular private hospitals and allied services, is still recovering since the COVID-19 period. Wage and non-labour inflation have been costly, and as private health insurance companies pass on limited price increases, the sector is finding the recovery slow.In this environment, companies that can help themselves tend to do quite well. Essentially if you can control your own costs, you have greater control over your destiny.

 

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