‘Economy in trouble’: Aussies ‘cutting back hard’ on spending

Macrobusiness Chief Economist Leith Van Onselen says Australian households experienced the “biggest decline” in household disposable income in the world last year.

“All the talk then was about this higher than expected inflation figure which could potentially lead to another rate hike from the RBA,” Mr Onselen told Sky News host Danica De Giorgio.

“I think this week’s retail sales have actually put a dampener on that.

“Retail sales unexpectedly fell by 0.4 per cent in March, and they are up only 0.8 per cent.

“Once you subtract population growth … what it means is households effectively cut back on their retail spending by about five per cent … that is a massive cut back.”

[morganoox]

Traitors have destroyed working Australians

[paddlesmcbean]

Vote labor/greens/teals out at every level of govt at every election. Save Australia.

[umaddotjpg]

This is insane. This time last year my agl bill was $350. Last week i received a bill of $890. And i used LESS electricity than last year. What in the hell. We'll be paying 4k a year for power . So much for a $275 promise off our bills. I only live with one other person too. This is is crazy unfair. Struggling to keep up.

[MrJohnmartin]

Families dont have money to spend so another rate hike will fix the problem. Is this not insanity?

[connorduke]

Remember folks, we can either have a rich economy or a net zero economy, but not both at the same time.

[windsongwong]

The bottom 30% are suffering.
The top 20% are celebrating.
The rest are neutral.

[RottenWoodInPower]

I save every cent to make housing payments, contribute absolutely nothing to other industries. Abolish negative gearing and cgt discounts now

[rabidsminions]

Economy in Trouble Aussies cutting back hard on spending. Inflation is cumulative, Businesses have been cutting back hard on payrises year after year, now the people have shut their wallets. Businesses will have to sit tight until the tax cuts come in, in July because the people have no money left.

[andyscusting]

Spending less on manufactured things is bad for K - mart, Target, Harvey Norman and China .

[anitacohen]

This is what you get when both lamentable major political parties contribute to the situation!

[rachaelcourtnell]

Oh what, a promise of power bill rebate. The promise that never arrives lol.

[helium]

Build Modular Homes. It is the only way

[stuartthompson]

Thanks Leith for saying that. We won't feel guilty about getting it.

[philmelb]

What about self funded retiries and savers suffered for years to low interest rates. Protection racket for ponzie housing market. We need more income from higher interest rates. There's more of us who been suffering for 15 years. Than the greedy vendors.

[robstone]

He the hell do people spend so much on electricity? $1, 000 will cover my electricity for the rest of the year.

[PaulLaidlaw-wb]

Do households who are in solar credit get this $1000

[sophrapsune]

It’s utterly irresponsible.
Money is fungible.
Just because the resource tax was increased does not mean that the most effective use of funds in Queensland is paying for energy consumption and taking away any market signal.
The state is drowning in debt and we need to pay that down to have a viable future.
The government should instead pay down debt and remove the factors inflating energy costs, starting with a failed energy strategy.

[juliancisco]

Means testing is discriminatory tbh; it usually means the hardest working Australians who typically will pay the largest taxation, end up paying the largest bills yet we contribute the most the economy through mandatory and discretionary spending whilst not receiving Centrelink hand outs.

[zlt]

Not surprised with the clown in power..

[brothermaynard]

What good is a power bill cut when you're homeless - or about to be?