Spending tanks
The interest rate hikes are having the desired effect, with spending now a nasty -8 per cent lower than a year ago according to ANZ's tracker.
Given where price inflation has gone over the past year, this suggests a sizeable decline in volumes.
In terms of categories, it looks as though some types of discretionary expenditure may have been the hardest hit, which makes sense.
In this sort of environment, goods prices will most likely be discounted and should fall.
Of course, ANZ is only one data point, but it is generally being mirrored by other spending trackers, models, and projections.
Household consumption is sinking, though we may just dodge a technical recession looking at some of the other component parts of GDP.
