Growth, inflation and labour market all easing
Insight
Our monthly transaction data suggests spending turned a corner in March with total spending declining, after holding up through more than a year of high inflation and rising interest rates.
“Our monthly transaction data suggests spending turned a corner in March with total spending declining (in seasonally adjusted terms) after holding up through more than a year of high inflation and rising interest rates.”
“The long period of rebalancing between goods and services spending looks to have run its course with both categories declining – the first significant monthly decline in services spending since the Omicron wave in January 2022.”
“In total, nominal consumer spending was up 2% over the course of Q1. Given that inflation is still high, this suggests another quarter of modest real consumption growth is likely when national accounts data become available.”
For further details please see NAB Monthly Data Insights (March 2023)
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