Economists predict a continued slowdown, as household data reflects reduced spending and disposable income, further complicating the economic landscape.

The recent full-year reporting season for companies has concluded, providing insights into the economic climate, which is characterized by high borrowing costs and persistent inflation.

Amid these pressures, around 5% of home borrowers are reportedly in a 'particularly challenging situation,' with some potentially needing to sell their homes due to rising costs and insufficient income.

Looking ahead, the upcoming RBA board meeting on September 24 is expected to be contentious, as global trends favoring rate cuts in other major economies add to the pressure on Australian policymakers.

Treasurer Jim Chalmers attributed this sluggish growth to a combination of global economic uncertainty, high interest rates, and moderating inflation, which currently stands at 3.8%.

However, households are feeling the strain, with the savings rate plummeting to 0.6% in June from 1.7% the previous year, while spending has also decreased.

The financial year 2023-24 recorded a growth rate of only 1.5%, the lowest since the 1991-92 recession, according to the Australian Bureau of Statistics.

RBA Governor Michele Bullock defended the bank's interest rate policies, citing ongoing inflation pressures in sectors such as home construction, rents, and insurance.

Despite the slow growth, the economy has expanded for eleven consecutive quarters, countering predictions of an imminent recession due to the RBA's inflation measures.

Australia's economy has shown signs of significant weakness, with recent GDP figures indicating a mere 1% annual growth through the June quarter, marking its worst performance outside the COVID pandemic since the early 1990s.

In light of these economic challenges, the Reserve Bank of Australia (RBA) is facing increasing pressure to ease its monetary policy, particularly as government initiatives aim to alleviate the cost of living.

The job market remains relatively strong, with low unemployment rates, which helps temper concerns about a potential recession.