Recent reports have indicated that consumer confidence is at a 10 year low and that people are now more likely to put extra money into savings and reduce discretionary spending. At the same time cost price rises due to rising material and transport costs are increasing the price of bicycles, parts and accessories.

In addition regional towns economies are being hit by reduced motoring tourism. In a recent Victorian Tourism Industry Council survey, 64% of regional operators identify high oil prices as a critical constraint on their business.

On a more positive note for cycling reduced car usage is being replaced by increased public transport patronage (Melbourne’s rail system patronage has grown 30% in the past 3 years) and increased bicycle sales. As well as sales of new bicycles retailers are reporting and increase in servicing of old bicycles.

An interesting sidenote to the world wide problem of increasing fuel prices is that a major bicycle parts distributor in USA is reporting that sales of 27” tyres have gone through the roof this year as people resurrect their old road bikes from the 1980’s and before.