How did household consumption affect Q1 growth?

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Household Consumption Significantly Hampered First-Quarter Economic Growth

Household consumption acted as the primary detractor from economic growth in the first quarter, experiencing substantial declines across various spending categories. This downturn in consumer spending was a major factor contributing to the overall economic contraction.
Sharp Reductions in Consumer Spending Noted

Spending on essential and discretionary items such as clothing and vehicles saw significant decreases. Further substantial falls were recorded in expenditure on transport, recreational activities, and services provided by hotels, cafes, and restaurants. These broad-based reductions in household expenditure directly impacted the gross domestic product figures for the quarter.
Broader Economic Context of the Contraction

The economy contracted by 0.3 per cent in the quarter ending March, marking the first such decline in nine years. This slowdown resulted in annual growth of 1.4 per cent, the weakest performance since the 2009 global financial crisis. The economic environment was already challenged by severe bushfires, a prolonged drought, and the onset of the pandemic, which led to business closures and job losses.
Factors Supporting Economic Activity

Despite the overall contraction, certain components provided some support to the economy during this period. Net exports and government spending were identified as areas that bolstered economic performance in the first quarter. These contributions, however, were insufficient to offset the significant drag from household consumption.

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How did household consumption affect Q1 growth?

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