australians curb spending as household debt balloons - household electrical appliances

SYDNEY (Reuters)-
Australia's economy may have won a remarkable streak, avoiding a 25-year recession, but there are now clear signs that most of the consumers who are driving the economy are exhausted.
As cash rates hit a record low, house prices hit a record high, and household debt in the United Statesto-
Income ratio climbed to full
According to the Reserve Bank of Australia, the time peak is 189%. RBA).
This means that more and more people don't have much cash to spend freely-from cars to appliances and new clothes --
As their wages were consumed by huge mortgages and high rent payments in the country
The property market is hot.
Moreover, the sudden fall in house prices will not help --
At least in the short term, it is likely to expose and exacerbate the problem, squeezing many people who buy the bubble market with high mortgage payments and few home equity.
"Even in richer families, we have seen quite a surge in pressure.
Large mortgage loans, big promises but no income growth "digital financial analysis (DFA)
President Martin North
"Stressful families are unlikely to spend in stores, which is a drag on future growth.
North estimates that 52,000 households will be at risk of default over the next 12 months, while 23 are at risk of default.
4% of Australian households are under mortgage pressure, which means that their income cannot cover ongoing costs.
Compared with 19% a year ago.
For graphics on the Australian and New Zealand real estate markets, click-bit.
Ly/2 saOoAy "people are happy with the mortgage," said Brad Smith, a car sales consultant at MotorPoint, Sydney, whose sales have slowed significantly over the past six months.
"They all have a budget.
Everyone's money is in the House, that's it.
"Australia is also facing a cash shortage as price increases in basic commodities such as food, electricity and insurance are accelerating at a rate of 3.
At a time when wages in Australia grew at a record low rate, the annual growth rate was 4%, only 1.
At 9% this year.
At the same time, sales of retail, personal loans and luxury cars are growing more
Annual low, indicating the family sector
Nearly 60% of Australia's $1. 7 trillion ($1. 3 trillion)economy -
Under severe pressure.
Australia's love of real estate worries the Bank of Australia (RBA. The Bank of Australia has repeatedly warned about the dangers of excessive real estate lending and the impact on economic spending in other regions.
The central bank is reluctant to raise interest rates in an effort to cool the property market, as it fears it will hit domestic demand as real wage growth turns negative.
Moreover, corporate lending grew at its slowest pace in three years.
For figures on inflation and wage growth in Australia, click-bit.
Still, signs of falling spending have prompted economists to rethink Australia's strong growth forecasts.
Just last month, the RBA raised gross domestic product (GDP (GDP)
Forecast 25 basis points to 2 per year. 75-3.
75% from 2 in the middle of next year. 50-3.
50% it is expected to be in February.
The Central Bank of Australia's confidence stems from the stabilization of mining investment after years of sharp declines, a rebound in iron ore and coal prices-Australia is the main exporter of both countries --
From the low point of 2015, and the prosperity of housing construction.
However, many believe that the central bank's forecasts may be too optimistic.
Morgan Stanley and National Bank of Australia (NAB. AX)
It is believed that after the rise of 1, the economy may reverse in the third quarter.
The quarter of December was 1%. First-
Quarterly GDP data will be released in June 7.
"As the housing market slows down, we see consumer growth as a major risk in record-setting situations --
"Wage growth is slow and discretionary cash flow is constantly being hampered," Morgan Stanley economist Daniel Black said . ".
Weak consumer spending has caused a huge drag on retailer performance, furniture and home appliance chain Harvey Norman (HVN. AX)
JB Hi-e-shopFi (JBH. AX)
Trading near one. year lows.
Retail sales have barely increased in the past few months.
According to the NAB Online Retail Index, even online sales have slowed, and all major categories, including household goods, games and toys, daily transactions and take-away food, are shrinking in April.
Following strong growth in 2016, car sales have been flat this year, while sales of luxury cars and sports utility vehicles are 4-year low.
For consumers such as Sydney resident Mary
Aimee Guillermin, after entering the Sydney real estate market for $1, has little "money. 4 million 3-
Bedroom house last month
"We thought we could relax a little once we had a house, but now that we have a house, I feel more uncertain about stability and financial security, she told Reuters.
"So, do we end up spending a little more on clothes, restaurants and going out, and what do you have that I don't think will happen. ” ($1 = 1.
$3377)