Wednesday June 10, 2009

The key strengths of the economy are income and household spending

Decreased retail sales and consumption expenditure were the main culprits of the stall in the Australian economy over the past year, according to leading industry analyst and economic forecaster, BIS Shrapnel.

The company's Economic Outlook bulletin identifies household spending as the key driver of prospects for the economy. Continued weakness in expenditure will determine the extent of the damage to the economy over the next financial year. Conversely, it will be the timing and strength of the recovery in household spending that drives the next economic upswing.

Contact: Dr Frank Gelber