Inflation and interest rates have consumers planning to slice their Christmas spending amid warnings the global economic outlook is deteriorating. auspol inflation
for the domestic and global economy over the past four weeks amid high inflation and efforts to control it through tighter monetary policy., their highest level since 2013, with the bank warning consumers should expect even more rate pain in coming months.
Westpac found almost 40 per cent of its survey participants are looking to cut Christmas spending, a record high for the measure. It also found the October budget has failed to buoy consumers, with 35 per cent reporting Treasurer Jim Chalmers’ fiscal blueprint had worsened their financial outlook.Nomura senior economist Andrew Ticehurst said shoppers were reacting to tight financial conditions.“They are continuing to spend, but this likely reflects higher prices more than higher volumes.
While consumer sentiment has fallen over recent months, business confidence and trading conditions have remained elevated. The October budget revealed an improved bottom line this year and next but a lift in forecast deficits through 2024-25 and 2025-26. Over the next four years, the budget is expected to run-up combined deficits worth $181.8 billion.
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