The biggest problem in Aussie macro is weak household cash flow. Today’s Aussie Business Indicators report suggest that things are getting worse — not better.
On the quarter, nominal wages and salaries paid by the private sector grew by a little less than 80bps. This was the slowest pace of growth since March 2017.
Most of this was due to employment growth of a little over 0.6%q/q. If you subtract out employment growth, average wages grew by a paltry 0.1%q/q.