Posted by Rita Mu
The Australian Food and Grocery Council (AFGC) and logistics company CHEP Australia have launched an index that measures economic activity up to three months in advance.
Data from the new AFGC CHEP Retail Index, which draws information from CHEP’s pallet movements in the supply chain, is analysed by Deloitte to provide users with an insight into past trends and predictions on economic activity for the next quarter.
The economic indicator has been developed by extensive analytical modelling using years of CHEP transactional data and other data sources, combining historical Australian Bureau Statistics (ABS) data with more than 10 million data points based on CHEP pallet movements, according to the AFGC. This methodology has been tested by Deloitte over the past two years and the results then subjected to a retrospective review over the last seven years.
Chief Executive Kate Carnell of AFGC said the Retail Index was ideal for industry and economic commentators, particularly within the food and grocery sector.
“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,” she said.
According to a report by Skynews.com.au, the first edition of the index, released in mid-May, showed that movement of goods in the March quarter of 2011, in terms of index points, was up 2.7 per cent from the previous corresponding period.
The next edition of the index will be announced in late July 2011.
Image: foodaust.com.au