sydneythere are few signs that australians are planning to slow their spending even though they are as gloomy about the economic outlook as they have in 30 years a survey of 1000 consumers by ubs in may just after the reserve bank of australia raised interest rates for the first time since 2010 showed households are still expecting to increase spending though at slightly slower pace the survey indicated intentions to buy property remain very resilient even amid forecasts for substantial falls in house prices over the next year with plans for spending on renovations actually going up the survey data was collected prior to the rbas decision in june to accelerate the pace of interest rate increases with a 50basispoint interest rate increase the central bank also warned that the inflation outlook was deteriorating still the survey offered a window into how well placed consumers are to face the uncertainty of higher mortgage costs and higher costs of living in general a survey by anz and pollster roy morgan published last week showed consumer sentiment had dropped to levels not seen since a deep recession in the early 1990s that lifted unemployment beyond 10 that result emerged despite signs of rising wages and strong hiring ubs strategist richard schellbach said household savings will support consumption with 60 of funding for travel still expected to be drawn from a deep pool of savings which grew through the pandemic consumers continue to cite high levels of income stability and job security as the key positive supports behind their financial outlook he added australias unemployment is at 39 the lowest level since the early 1970s with the rate expected to fall further in coming months so far the negative impact of higher interest rates has been relatively modest presumably interest rate pressure will be more obvious by the time of the next survey in the third quarter mr shellbach said the survey showed more of the consumption pie is being taken up by spending on necessities cost of living pressures are forcing consumers to spend more on food fuel utilities and healthcare reflecting the move up in interest rates consumers said they are less willing to take on more debt over the next 12 months rba governor philip lowe said last week that inflation is expected to be higher than expected even a month ago preparing the way for a further jump up in interest rates in coming months mr lowe is expected to affirm in a major speech on tuesday that the rba is determined to do whatever it takes to cool consumer prices