1. Car parks

After a long period of long waiting times and high car prices, the tide has turned in favor of potential car buyers.

Global vehicle production has rebounded strongly from the pandemic’s disruptions, leaving a surplus of vehicles for automakers. At the same time, cash-strapped consumers are placing fewer orders and choosing to keep their current vehicles or buy used.

“These global supply trends have resulted in increasing inventory levels, increased competition among dealers and reduced margins on new vehicles,” said Paul Warren, CEO of Peter Warren Automotive.

New and used car retailers reported a 30.6% decline in pre-tax profit for the fiscal year to $56.8 million.

Keith Thornton, CEO of Eagers Automotive, told investors that consumers are resilient, but higher interest rates are negatively impacting their purchasing decisions.

“The RBA’s monetary policy measures are having the desired effect in the auto industry, with discretionary spending in the retail sector reduced and a shift towards more value-conscious purchasing,” Thornton said.

Most dealers are offering higher discounts to entice customers to visit their car dealerships or online sites, bucking the trend of rising car prices seen at the start of the pandemic.

2. Coffee shots

The reporting season was not without bright spots.

Shares of home appliance maker and distributor Breville rose after a year of record sales despite general weakness in consumer spending.

That recovery was supported by double-digit growth in the coffee category, with strong sales overseas, particularly in the US, as demand for espresso grows. Sales were also healthy in Australia.

Coffee lovers have helped Breville capture all parts of the value chain, with machines ranging from a few hundred dollars to the most expensive machine at $3,699.

Temple & Webster, an online retailer of furniture and homewares, was another company to please shareholders after it recorded a rise in the number of active customers to 1.1 million from 832,000 a year earlier.

The retailer has charted a profitable path by selling online to millennials and Gen Zers, while adjusting its product offerings and pricing to meet the cost-of-living pressures facing its customers.

3. Home renovations and mortgages

While the renovation industry is typically resilient during economic downturns, companies that supply materials and products to improve buildings and homes have reported disappointing results due to the effects of higher mortgage rates.

Companies such as bathroom products supplier Reece and plumbing manufacturer Reliance Worldwide are hoping for interest rate cuts to give homeowners some confidence.

“If interest rates change, that will be a signal that the psychology is going to change,” Reece CEO Peter Wilson said after the company’s annual results.

Reliance Chairman Stuart Crosby said high rates had “reduced consumer appetite for home improvement activities” and that the company’s outlook depended partly on future rate movements.

Australian households are struggling with 13 sudden interest rate hikes and high rents, as well as rising costs for essentials like electricity and food, leaving less money available to renovate their homes.