In The Media | Nov 29, 2023

Australian population growth masking weaker consumption trends

Household consumption growth has slowed markedly in recent quarters as tighter policy settings have started to weigh on growth. Growth has stayed in positive territory largely due to strong population growth; on a per capita basis, the trend is much weaker, with consumption declining for the last three quarters.

Looking ahead, we think the decline in consumption per capita is near its trough. We forecast per capita consumption to track sideways over the next year. The recovery in real incomes along with cash rate cuts will facilitate a rebound in spending in 2025.

Watch Ben Udy’s full interview with ABC’s The Business below:

Back to Resource Hub

More Research

Post

Property risk premiums rising but will remain below average in Australia

Australian bond yields have risen over the past 18 months, highly influenced by movements in the US, reflecting more hawkish expectations for policy rates and a higher term premium.

Find Out More

Post

Strong print for the Australian labour market: what’s next?

Sean Langcake from Oxford Economics Australia addresses the key facets of Australia's economic landscape. Sean commends the country's labour market, noting that it continues to defy economic gravity.

Find Out More

Post

Global Key Themes 2024 – Few opportunities in a gloomy landscape

Global GDP growth and inflation will slow in 2024 and central banks will begin to pivot in H2 – at least that seems to be the broad agreement among markets, policymakers, and forecasters. For the most part, we concur and have identified three key themes that will be key to the precise path that economies and financial markets take next year.

Find Out More