Here at First Choice we enjoy keeping abreast of local and global market news, so that we can provide accurate and up to date information to our clients.
We are buoyed by recent financial data, which backs up what we’ve been thinking: this Spring is a great time for people looking to enter a business. If you get the ball rolling now on your business purchase, you should be able to organise a settlement date in time to take advantage of the warmer weather, and higher profits usually seen pre-Christmas and in the Summer months.
Just to give you a little snapshot of what’s been happening globally over the month of August.
• China economic data continued to show that the government stimulus measures are supporting the economy. GDP grew at 6.7% in the June quarter, slightly ahead of expectations. Retail sales growth also picked up to 10.6% year on year in June, up from 10% in May;
• Australia’s economy is in reasonably good shape, with consumers and businesses finding conditions reasonably good (although the RBA cut interest rates again to 1.50%, due to weak inflation and wages growth). The S&P/ASX 200 Accumulation Index returned 6.3% in July, with all sectors posting gains for the month. Consumer discretionary, and consumer staples were the best performing sectors, with returns of almost 9% over the month. The strongest equities sectors were materials (7.8%), industrial (7.2%), health care (7%), financials (excluding property 6%), and utilities (7%);
• In the US non-farm payrolls rose by 287,000 jobs in June, bouncing back from May results, and returned readings closer to the 200,000 monthly average seen over the past few years. Other activity indicators were also strong, such as retail sales, up 7.4% on an annualised basis. This is the highest rate of growth in 2 years.
• Equities staged a strong recovery in July, helped by expectations of more central bank stimulus in the major economies. Investors shrugged off the UK decision to leave the EU, and companies reported better than expected earnings in the US and Europe
• In global economies, most of the economic data over the past month paints a picture of moderate economic growth, falling unemployment, and strong housing construction activity.
This news places you in a good position to start getting serious about purchasing an existing business. An existing business allows you to continue drawing an income while starting afresh in self-employment, or a new industry! With an existing business, you have the benefit of someone else having done the hard work in establishing the business, setting up a lease, and in the business’ years of infancy. With an existing business, you have the benefit of seeing the business up and running, looking into past profits, and watching how the previous owner ran things.
This economic news, combined with everything you’ve learned so far in our blogs about investing in Melbourne, bodes well for your future in business. With Melbourne’s population expected to exceed Sydney’s in the next couple of decades, your business will benefit from better infrastructure, and increased opportunities.
We are one of Victoria’s leading business brokerages, and offer broad and in-depth market knowledge. If you’re thinking about buying or selling a business, telephone First Choice Business Brokers on 9899-1888 for a confidential discussion.