29 Construction sector activity continues to have a strong influence on the output gap. Although consumption growth per capita has been weaker than projected since 2013, this is partly explained by exaggerated expectations rooted in the housing cycle of the early 2000s.
We have observed a lower propensity to consume out of housing wealth and an increase in household saving to more moderate levels since the GFC. With hindsight, it  17  appears over-optmistic to have extrapolated the experience of the 1990s and early 2000s when debt accumulation and consumption out of wealth was exorbitant.