Wednesday’s national accounts release for the June quarter confirmed that the Australian consumer is sick, which is bad news for the economy given the consumer accounts for around 55% of the economy’s growth.
As shown in the next chart, annual household consumption growth has collapsed to just 1.4% – a level that is less than half the historical average of 1.4%:
The collapse in household consumption has driven the decline in real final demand, which fell to just 1.7% in year to June:
Advertisement
