National accounts for March 2024 quarter

Consumer still willing to spend

Published: 07 June 2024

Australia’s national accounts reveals that income growth remains strong and consumers are spending more money outside of retail. For the March 2024 quarter, household income rose 5.1% and total consumer spending was up 5.9%, whereas retail spending only rose 2.5%. Households are saving very little of their income, a reflection of stored up savings from the past four years, but also a reminder that consumers will be more value conscious. We expect similar trends to constrain a retail recovery in FY25e as households allocate spending elsewhere and lower retail price inflation dampens overall revenue.

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