Household consumption outperforms
ANZ Research expects household consumption growth to outpace the increase in economic activity over the next 12-18 months subject to lockdowns not being a permanent feature.
Household incomes are likely to be supported by the falling unemployment rate and an eventual acceleration of wages growth. Continued fiscal support during lockdowns also helps lessen the impact on incomes.
The spike in household savings in 2020 could lead to more consumption, even without an increase in household incomes, as households draw down their savings buffer. Increasing housing prices and low interest rates will also support consumption.