As 2019 comes to a close, the Australian economy is giving mixed messages.
On the one hand, the domestic economy is slowing fast, with the private sector in recession and the economy held up largely by government spending.
Household incomes continue to stagnate. In response consumers are closing their wallets with retail sales volumes and car sales collapsing, and overall consumption growth slowing to levels not seen since the Global Financial crisis (GFC). Households have also begun to lift their savings.