Michael Blythe Caution Quotations

Consumer caution was shaping up as the major domestic risk to the Australian economic outlook in 2006. Good labor market outcomes were always going to be the best antidote to this caution.

Consumer caution persists and a weak housing sector remains a drag on overall services sector activity.

Whether or not this consumer caution becomes a persistent theme in 2006 will depend to a large extent on labor market trends.