Economic Outlook

Outlook 

Australia’s economy is showing significant signs of slowing down with real retail spending declining over the past nine months to June. Essentially consumers are struggling to keep spending as the squeeze from higher goods and services prices, rising mortgage interest rates and rents take their toll. Employment also fell marginally in July with the unemployment rate edging up from 3.5% to 3.7%. There was some mild relief as annual consumer inflation moderated from 5.4% in June to 4.9% in July according to the new ABS monthly measure. The Reserve Bank again held the cash interest rate steady at 4.1% but maintained guidance that further interest rate rises may be required to get inflation back to their 2% to 3% target range.

Article written 5 September 2023.

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