Australian households’ nine year income recession

The March quarter national accounts, released on Wednesday, was another shocker for Australian households.

As already reported, real average compensation per employee declined by 0.8% in the March quarter and is now 3.5% lower than March 2012:

Yesterday, the Reserve Bank of Australia’s released further data, derived from the national accounts, showing that real per capita household disposable income (HDI) has experienced zero growth since December 2011:

Below is the same chart summed over four quarters, which paints the same picture:

Around eight years ago, MB argued that Australian households were facing a “lost decade”.

We’ve been proven correct, based on this data.

Leith van Onselen

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