The Australian National Accounts for the June 2023 quarter revealed that wages growth remains very strong and, despite a range of headwinds, households still want to spend their money. They continue to tap into stored-up savings to sustain spending habits. Wages grew 9.2%, disposable income only rose 2.1% and consumer spending was up 7.8%. The Australian economy is also benefiting from population growth of 2.4%, which should remain above trend for another 12 months. The headwinds for household will continue and retail spending is likely to remain weak give both a squeeze on living costs and a desire to spend elsewhere outside of retail. This weakness is likely to be most acute in calendar 2023, but we may not see a meaningful improvement in retail sales growth till 2025.