There is much focus on household indebtedness and its impact on household consumption
Check this out, for example, from PMI data earlier today from Australia:
- Reluctant consumer spending saw activity shrink at a faster rate in September in retail trade (43.1 points)
That is way into contraction terrority!
On Thursday, 4 October 2017, due at 0030 GMT - Retail Sales data for August will be a focus. At the same time will be the August trade balance.
Previews via ANZ:
Retail sales likely fell in August, in our view, given higher petrol prices, lower house price growth, weakening consumer confidence and soft anecdotes. This would be the first negative outcome since March, and would see annual growth slow to 2.9% y/y from 3.6% y/y in July. Conditions remain challenging for the retail sector, and it is not surprising to see the strength in sales through April and May wane.
If the result is as poor as ANZ forecast that should be a negative input for the AUD
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We expect the trade surplus to have increased to AUD900m in August, from AUD425mn in July. Export volumes have increased, along with the price of commodities; while we expect imports growth to continue to remain weak on the back of the stronger AUD
