The Economic View: A diverging strain

Business confidence remains in optimism as profits, conditions and operations begin to expand after several years of flat growth. However, this is not translating into consumer confidence as wage growth is not expanding off the back of business growth. Instead, business is repairing balance sheets and operations rather than translating its growth into wages, leaving consumers under pressure. 

Until we see a translation into wages, consumers will remain pessimistic on household debt and interest rate concerns.