Traditionally the festive season produces a surge in consumer spending.
However, Australians are not flocking to stores and splashing out as much as previous years.
The federal government’s mid-year-fiscal and economic outlook, or MYEFO, reveals the drought, staggering house prices, a retail slowdown and global economic uncertainties such as Brexit and the trade war between the United States and China are producing a slowing economy.
The report signals flat-lining wage growth, which is set to further slow consumer spending.
Small and medium business owners are being impacted by the decrease in retail spending.
