The most attractive industries for this financial year

Which industries look set for growth, and which will be left behind?

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Another financial year has come and gone, and we saw a number of industries soar whilst others plunged. As the 2013/14 financial year begins, however, analyst group IBISWorld has provided its outlook on where it believes the growth will be realised, and which industries are in for a rude awakening.

Set to soar

First and foremost, the group is very optimistic about superannuation funds, estimating a 40.5% increase in growth for the year. Citing low unemployment rates as well as a compulsory 0.25% increase in contributions, sharp increases in superannuation revenue should be realised.

Despite significant signs of a slowdown in the industry, iron ore mining has been forecast to increase by 22.9%. This prediction fares well for some of Australia's largest miners, such as BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO) and Fortescue Metals Group (ASX: FMG), which have all acted as a drag on the market due to heavy volatility in commodities and diminishing demand. It is believed that these companies, as well as others in the industry, will begin to capitalise on new sites and recent investments in infrastructure.

Unsurprisingly, internet retailing is predicted to grow by 13.3% as consumers continue to turn to online stores. With this trend, local, traditional retailers like JB Hi-Fi (ASX: JBH), Myer (ASX: MYR) and David Jones (ASX: DJS) have expanded their online stores, which will contribute to growth in the sector.

Furthermore, smartphone and tablet device usage is expected to contribute towards a 13% boost in internet publishing, whilst renewable energy providers could gain around 11.3%.

Not so fast

On the other hand, video and DVD hire outlets are expected to diminish in size as "more convenient services like iTunes, YouTube or even piracy" gain in popularity, whilst automotive electrical component manufacturing will decline as consumers turn to more energy efficient products built overseas. Book publishing, mineral exploration and heavy industry & other non-building construction are also expected to shrink.

Foolish takeaway

Analysts believe that investors could see excellent returns this financial year, as changing circumstances give companies a fantastic opportunity to increase their earnings. With the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) set to climb, investors should be looking for quality, well managed companies set to outperform the market.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

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