In conjunction with Australian Food and Grocery Council (AFGC) Chief Executive Kate Carnell, logistics company CHEP Australia Managing Director Phillip Austin officially released the new economic indicators called the AFGC CHEP Retail Indexes at AFGC’s annual Highlands 2011 Senior Executive Forum in the Yarra Valley, Victoria.
Drawing on physical and product movements throughout Australian supply chains, the retail indexes provides a new and early indication of economic activity, as well as insight into historical trends and a forecast for the next quarter’s activity.
The AFGC CHEP Retail Index will be available each quarter, up to two weeks prior to the release of the official corresponding figures by the Australian Bureau of Statistics (ABS) with the use of analysis from Deloitte Analytics and commentary from AFGC, which represents Australia’s $102 billion food and grocery manufacturing sector.
The economic indicator has been developed by extensive analytical modelling using the combination of historical ABS data with more than 10 million data points based on CHEP pallet movements and years of CHEP transactional data and other data sources. Tested by Deloitte over the past two years and the results then subjected to a retrospective review over the last seven years, indicates that this model is a reliable lead indicator of the ABS Retail Trade.
“The value-adding AFGC CHEP Retail index provides industry with another useful tool to gain a better market insight, assess retail confidence and is a reliable forward look at the future trend of underlying supply chain activity and retail trade,” Ms Carnell said.
The AFGC CHEP Retail Index will be published quarterly, with the next announcement due in late July 2011.