Consumer sentiment has fallen sharply and is at very low levels consistent with major economic disruptions. The August figure is at just 81.2 pts and in deeply pessimistic territory. But consumption growth has so far been fairly solid. In this podcast, Stephen Wu, Economist in the Australian Economics team and Belinda Allen, Senior Economist discuss what is driving the weakness in consumer sentiment and the implications for spending. Importantly, sentiment is still weak even after acc...
Consumer sentiment has fallen sharply and is at very low levels consistent with major economic disruptions. The August figure is at just 81.2 pts and in deeply pessimistic territory. But consumption growth has so far been fairly solid. In this podcast, Stephen Wu, Economist in the Australian Economics team and Belinda Allen, Senior Economist discuss what is driving the weakness in consumer sentiment and the implications for spending. Importantly, sentiment is still weak even after accounting for other economic variables and so raises the risk that spending growth will slow more materially from here. We anticipate softer spending will drive below-trend economic growth over 2023 and continue to expect the RBA to ease monetary policy in H2 23.
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