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Pick-up in consumption growth likely to be temporary

Although consumption growth has been fairly weak in the first half of this year, favourable income trends and a rebound in July's retail sales suggest that it may have picked up a little in the current quarter. The rally in equity markets and improved consumer sentiment supports the view that real annualised consumption growth may have accelerated to over 2%, double the meagre 1.1% posted in the second quarter.

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