Luci Ellis, Assistant Governor (Economic) at the Reserve Bank of Australia

Speech is titled: 'What's Up (and Down) with Households?'

Main points (via Reuters headlines)

  • watching labour market developments closely
  • labour market has unambiguously improved
  • can be reasonably confident in the strength of labour market data
  • says strength is shown in multiple, independently collected data sets
  • says many of our own liaison contacts tell us that they are hiring
  • still a little way off unemployment level that would drive materially faster wages
  • weak income growth weighing on household consumption
  • falling house prices may have impacted spending on vehicles, household goods
  • tax revenue from households has grown solidly despite slow income growth
  • growth in tax paid has exceeded income growth for past six years
  • progress in tax collection have boosted revenue collected from a given income
  • says some of the drags on income not likely to be permanent

Full text: What's Up (and Down) With Households?

Pretty upbeat comments from Ellis here on employment. Less so on household spending … and that final one …. some of the drags on income not likely to be permanent (bolding mine) is reason to be a bit wary indeed.

Luci Ellis, Assistant Governor (Economic) at the Reserve Bank of Australia