Australians pulled back spending in Dec after Black Friday splurge.

Household spending in Australia experienced a significant decline in December, particularly in areas such as household goods, furniture, and appliances. The Commonwealth Bank's Household Spending Insight index fell by 3.9% to 137.0 in December, as consumers shifted their spending to take advantage of Black Friday and Cyber Monday sales. The underlying spending pulse weakened due to the Reserve Bank of Australia's interest rate hike, which reached a 12-year high of 4.35% since May 2022. Although consumer spending on insurance, transport, and health increased in December, the overall decline suggests a slowdown in consumer spending and potential further interest rate cuts later in the year.

January 14, 2024
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