L-plate Treasurer accelerates into consumption crash

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By Leith van Onselen

Treasurer Josh Frydenberg continues to play-down concerns that falling house prices will drag down household consumption, which accounts for around 55% of Australia’s domestic demand. From The AFR:

The latest mid year fiscal and economic outlook revised down its estimate of consumption to 2.5 per cent from the May budget estimate of 2.75 per cent, however it expects that growth to kick back up to 3 per cent next year…

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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.