This was unlikely to be continued over a long period, and over the most recent four quarters, it has slowed to 5½ per cent. We expect some further deceleration as we look ahead, but the most recent data do not suggest it will be large.
Consumption has grown by 3½ per cent over the year to the March quarter and more recent data such as retail trade show good rises in the two most recent months – March and April. Given the growth in employment and incomes, and the fact that consumer confidence is above its longer-term average, prospects for consumption look quite good.