CommSec analysts have said that The Reserve Bank’s rapid interest rate hikes have appeared among declining voluntary consumer spending when it comes to household goods.
The rates are down 5.7% from the beginning of the year to March, making it the weakest annual growth in 19 months.
“We continue to expect consumer spending to slow from here as the impact of higher interest rates intensifies. The fixed rate home loans roll off is just gaining pace and variable rate mortgage holders will face another lift after the latest interest rate hike by the RBA at the May board meeting.”
Rising by only 0.4% in March was retail trade, due to Aussies continuing to spend on food and at cafes and restaurants.
Consensus estimation sat at a 0.2% increase. The retail trade growth pace is now at 5.4%, being the lowest growth pace since December 2021.
All other areas of spenditure fell, such as clothing, personal accessories, footwear, household goods, and at department stores.
