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Further slowdown in consumption growth ahead

There is growing evidence that the household sector has begun to falter and, given the worryingly weak outlook for income growth, the situation is unlikely to turnaround any time soon. Indeed, we expect that consumption growth will slow from 2.7% last year to 2.0% this year, and with household debt at a record high and growing signs of a slowing housing market, the risks lie to the downside.

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