Fresh retail figures are tipped to show a rebound in consumer spending as falling interest rates encourage a recovery.
Data from the Australian Bureau of Statistics on Wednesday will indicate if there was a comeback in spending in May after further falls in inflation levels.
After spending went back by 0.1 per cent in April, because of hits to consumer sentiment and unseasonably warm weather making customers put off buying winter clothes, experts predict retail trade will be on the up.
The Commonwealth Bank has forecast spending to increase by 0.5 per cent for the month, with household expenditure also going up by the same amount.
ANZ has been more subdued in its predictions, saying a rise of 0.2 per cent for May is on the cards.
The May figures will also partly include the period following the Reserve Bank’s decision towards the month’s end to cut interest rates by 25 basis points to 3.85 per cent.
Another cut is predicted at the next meeting of the bank’s board on Tuesday, following better-than-expected inflation numbers.
Building approval figures for May will also be released on Wednesday.
Housing figures will come off the back of a 5.6 per cent drop in approvals during April, which was driven by a drop in the number of apartments approved for construction.
But private sector house approvals rose 3.1 per cent for the month.
One year on from the start of Australia’s national housing accord targets being rolled out, the number of new dwellings is expected to fall short.
The target was 1.2 million homes built in five years, but will likely come under the mark by 262,000 dwellings, according to the Property Council of Australia.
The low supply and falling interest rates have pushed up house prices further, with values going up for the fifth month in a row.
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