Australian national accounts for the September quarter reveals income growth of 2.6% and spending growth of 6.0%. Our analysis highlights that the weakness in retail spending is largely due to a reallocation by consumers away from retail as activities like travel and concerts returned to normal. Wages growth remains healthy and population growth of 2.4% is another partial offset to the pressure from higher interest rates and living costs on spending. The national accounts suggests we are more likely to see a soft landing for retailers and consumers. The weakness in retail demand is likely at its peak currently and should gradually improve through calendar 2024.