The latest Statement of Monetary Policy from the Reserve Bank of Australia (RBA) identified three key economic trends for businesses.
 
First, economic growth has slowed and GDP per capita has declined, although the economy is still holding up quite well. “Growth in domestic final demand has remained around its pre-pandemic average over the first half of 2023 despite weak growth in household consumption. Business investment growth has been strong, reflecting a large pipeline of work and an unwinding of supply disruptions,” the RBA said.
 
Second, the labour market remains tight, with the unemployment rate close to the lowest levels in 50 years, jobs numbers continuing to increase and the ratio of vacancies to unemployed persons remaining well above its pre-pandemic level. Nevertheless, “conditions have eased over the course of this year as growth in labour demand has moderated while growth in the supply of labour has remained strong”.
Third, real household incomes have been falling, although households are finding ways to manage. “That said, many households are facing a squeeze on their budgets and have had to make adjustments by reducing spending, dipping into savings (or at least saving less) and taking on extra hours of work in response to budgetary pressures.”
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