Third, in reviewing possible explanations for why investment in the non-mining sector in Australia has been weak, the most powerful reason boils down to firms' expectations of future demand, otherwise known as animal spirits. Mining investment was strong because expectations for future demand were high and there wasn't that much uncertainty around that expectation. Expectations of demand elsewhere have not been strong.
But, loosening the consumers belt for a year, will not do them much favours in the medium term, and might also trigger a swift negative reaction from international investors at the time when they are particularly sensitive to non-prudent public spending.