Aussie households can’t keep spending more than they earn


By Leith van Onselen

The most worrying aspect of last week’s Q2 national accounts release was that real employee earnings continued to fall, down 4.2% since March 2012:

With household consumption – representing 57% of Australian output – being held up by households drawing down their savings:


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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.