Are Aussies Splashing Or Stashing Their Cash?

September 2020 Newsletter | The last six months have been a uniquely challenging period, with the COVID-19 disruption being significant enough to bring Australia’s 29 year recession-free streak to an end. Despite this, one notable bright spot has emerged: spending on consumer goods. This spending has been particularly strong in categories such as furniture, home improvement and electronics. The strength in these categories, which has clearly been supported by government stimulus, will inevitably decelerate from current levels over time. But are there reasons to be more optimistic on the outlook for consumer spending than the media headlines might lead us to believe? This newsletter covers some recent data points which suggest that some optimism might be warranted.