Consumer Spending: Feeling the Impact of War

About this episode

The episode discusses the resilience of Australia's consumer spending amidst rising cost pressures linked to the Middle East conflict.

Australia’s consumer spending has remained surprisingly resilient, but early signs suggest that may not last. Host Mandy Drury speaks with CommBank Senior Economist Ashwin Clarke about how households are responding to rising cost pressures linked to the Middle East conflict. From higher petrol prices to broader cost-of-living impacts, they unpack how global shocks are filtering through to everyday spending and business activity. Ashwin explains why household spending has held up so far, supported by savings buffers and a willingness to absorb short-term income shocks. But with sentiment deteriorating, real incomes under pressure and unemployment expected to rise, the outlook is becoming more uncertain. Plus, CommBank’s Dr Hamid Yahyaei shares the key focuses for markets in the week ahead. Important Information This podcast is approved and distributed by Global Economic & Markets Research (“GEMR”), a business division of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (“the Bank”). Before listening to this podcast, you are advised to read the full GEMR disclaimers, which can be found at www.commbankresearch.com.au . No…

People in this episode

Host: Mandy Drury

Guest: Ashwin Clarke

Topics covered

• consumer spending
• economic impact
• cost of living
• global shocks
• household economics
• market outlook

Keywords

• consumer spending
• cost pressures
• Middle East conflict
• economic outlook
• household spending
• real incomes
• unemployment

Mentioned in this episode

Organizations: CommBank

Places: Australia, Middle East

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