The fun economy will make a comeback later this year as Australia’s middle income earners feel the most optimistic about their financial circumstances since the ultra-low interest rate era of 2021, according to a UBS survey. “The fun categories are making a comeback, led by spending intentions towards clothing, footwear, entertainment, food takeaway, and eating out,” Mr Schellbach said. However, UBS also warned investors the share market is expensive versus historical norms when compared to the average profit multiple companies trade on. The investment bank’s research shows the average profit multiple among the top 200 companies now sits at around 20, versus a long-run historical average since 1999 of around 17. “An additional rate cut, modest inflation and ongoing income growth should all support momentum in consumer spending in the coming quarters,” said Ms Timbrell.