From Bank of America-Merill Lynch chief economist, Saul Eslake:
”It is difficult to envisage a scenario in which consumer spending growth would recover strongly to an above average growth rate,” Mr Eslake said.
”The federal budget has taken away from household incomes and sapped sentiment and this has exacerbated an already challenging environment.”
Mr Eslake said he expected consumer spending to slow to be ”significantly below average” this year with ”only a modest improvement in 2015…
”In an environment of elevated household leverage, a preference for debt management and savings will … persist with consumers remaining prudent
