NOBODY predicted the slowdown in consumer spending as Australia bounced back from the global financial crisis and no one has great confidence in forecasting how long it will endure.
The central view, reflected by our panel of economists, is that the savings rate will stabilise at just under 10 per cent (its current level).
This means spending is likely to start rising again, at least in line with income growth, The Australian reports.
The growth in average weekly earnings of about 4 per cent and of employment at, perhaps 2 per cent, should translate to acceptable growth in consumption in the region of 6 per cent.
Read more: http://www.news.com.au/money/wary-consumers-cut-back-on-debt-there-seems-to-be-a-change-in-attitude-to-household-spending/story-e6frfmci-1226027177918#ixzz1HmFEzkdR