Consumer Spending May Stumble Later This Year

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Retail sales hit a record high in May. But headwinds are building, and consumer sentiment data shows households are pessimistic.

The evolution of household spending is a critical uncertainty hanging over the economic outlook that is subject to ongoing debate amongst economists. There is a risk that spending loses momentum later this year as the cash rate moves higher, inflationary pressures remain elevated, and dwelling prices fall.

See our short video below to find out more.

Economic Insights - 1 July 2022

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