New data will shed some light on the resilience of consumers as interest rate hikes and cost of living pressures erode spending power.
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On Tuesday, the Australian Bureau of Statistics will release retail trade data for the typically busy shopping month of December.
The November figures revealed the growing influence of Black Friday sales on consumer habits, pushing retail turnover up by 1.4 per cent to a new record high.
The sale period has been bringing Christmas spending forward in recent years as shoppers look to snap up discounted gifts.
While spending likely remained elevated into the final stages of 2022, economists expect consumer spending to ease in 2023.
Rising interest rates, high inflation and the expiry of ultra-low fixed-rate mortgages are likely to subdue consumption throughout the year.
While these challenges are yet to make a serious dent in spending habits, consumer confidence surveys have been reflecting these challenges for months.
ANZ and Roy Morgan's weekly consumer confidence survey, also due on Tuesday, has been tracking well below long-run averages.
The fortunes of the construction industry will also be on display as the ABS releases December building approvals data.
The forward-looking indicator, to be released on Thursday, has been trending down as investors, first home buyers and owner-occupiers start retreating from the housing market.
Official lending figures, due on Friday, will likely reveal further evidence of slowing demand for housing and a healthy appetite for refinancing as mortgage holders look for cheaper home loan rates.
Also this week, a parliamentary committee will start investigating options to ease cost of living pressures.
The committee, chaired by Liberal senator Jane Hume, will hear from the central bank, energy companies and regulators, unions, welfare groups, affordable housing advocates and other interest groups, starting from Wednesday.
Australian Associated Press
