Minutes: Outlook For Domestic Economic Activity Had Eased A Little

"Timely data indicated that growth in domestic demand had remained solid in the June quarter, led by household spending. Although consumer sentiment had declined notably, household consumption was supported by growth in disposable income, the increase in saving and wealth that occurred earlier in the pandemic, and the rebound in discretionary services spending. The pipeline of residential dwelling construction and infrastructure activity remained large, although capacity constraints were slowing the pace at which the pipeline could be worked through. Business surveys and information from the Bank's liaison program suggested the investment intentions of non-mining firms remained at or above average levels. Recent state government budgets also pointed to continued strength in public demand, supported in part by higher-than-projected revenue. Nevertheless, members agreed that the outlook for domestic economic activity had eased a little, with a key source of uncertainty relating to the response of households to rising inflation, higher interest rates and declining housing prices in some cities."