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Australian household spending rose just 0.1% in April
Australian Bureau of Statistics’ data shows household spending inched up just 0.1% in April, following a 0.1% decline in March. The figures suggest consumer demand remains sluggish compared to income growth, even as borrowing costs fall and inflation eases, according to Reuters.
Year-over-year growth in consumer spending slowed to a historic low of just 3.7%. Households account for roughly 52% of the country's GDP. Yet in the first quarter, when Australia's economic growth stalled at just 0.2%, consumer contributions to GDP expansion were meager, the news agency reports.
Against this backdrop, investors are now pricing in another rate cut from the Reserve Bank of Australia as early as July. Market expectations suggest the interest rate could drop to around 2.85% by early next year.
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