Federal Treasurer Scott Morrison says that household consumption, which makes up half the economy, remains strong and is a “key factor” in the year ahead.


The early signs for consumption this year appear positive, with major banks reporting record transaction volumes in the Christmas period and economists confident about the outlook for reasonable spending growth.


Morrison said the government’s decisions and policies over the year would be aimed at ­cementing the gains in confidence and avoiding anything that could act as “handbrake or undermine confidence”.


While the Budget update last month had lowered forecast growth in household consumption by 0.25 to 2.75% this year and 3% in 2016-17, the Treasurer said this was “still positive and still very strong”.