The October 2019 edition of the Household Spending Intentions (HSI) series showed a disappointing turn back down in Retail Purchase intentions. While there were some positive signs in sectors where the tax refunds now flowing would most likely be spent, the overall picture is one of continued consumer caution. More positively, spending intentions for Entertainment, Education and Motor Vehicles are now pointing up. Importantly, the improvement in Home Buying intentions is holding up – supported by the RBA rate cuts. A positive ‘wealth effect’ from the housing market should help support broader economic growth in the year ahead.
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