Australian consumers remain trapped in a recession.

A week ago, the Australian Bureau of Statistics (ABS) released its household spending indicator for May, revealing that consumers are continuing to cut back.

Overall household spending increased by just 0.1% over the year to May, indicating a decline of around 6% in real per capita terms. This decline in household spending is mirrored in retail sales data, which experienced a similar drop in real per capita terms. The following chart from Justin Fabo at Antipodean Macro plots the ABS Household Spending Indicator against the national accounts measure of household consumption:

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