Consumer spending falters in June
Figures for the month of June released yesterday showed consumer spending had remained unchanged from May with retail sales growing by 0.1 per cent.
Spending patterns may have faltered, however whether this can be interpreted as a sign of slowing economic activity is certainly open to question. Consistency of other factors such as strong employment growth, a high level of economic confidence and the continuing low interest environment would indicate that it is too early to for the current boom to end.
The loss of momentum may well be explained by a hold-off of consumer spending and distorted sales figures stemming from reductions in wholesale tax as GST changes begin to take effect.