- Consumer transaction, retail, and big-ticket item sales data continue to show mixed results, indicating a limited recovery in private consumption in Q3 2024.
- BI rate cuts may help boost private consumption, as the widening real interest rates since Q1 2024 seem to have lowered households’ consumption rates in favour of portfolio investments.
- However, the private demand condition may remain subdued in general, given the expected lower income growth, as the slowing labour market growth appears to disproportionately affect the middle-income class.
