There are fears a retail retreat could spark a wider consumer recession later this year.
In the first few months of 223, the economy grew just 0.2 per cent.
Some economists predicting just one more rate rise could be enough to tip Australia into a full-blown recession.
It means rate hikes are more than likely.
Philip Lowe, Governor of the Reserve Bank of Australia, has told already-stretched Aussies to cut back their spending.
“If people can cut back spending, or in some cases find additional hours of work, that would put them back into a positive cash flow position,” he said after another rate rise in June.
Except consumers already have.
Households have cut back spending on non-essentials to 2021 lockdown levels, and they’re drawing on savings, which, it’s predicted, will be drained by September.
