Shoppers are on the hunt for bargains but continue to tighten the belt at cafes and restaurants, new spending data shows. / (min cost $ 0 ) or signup to continue reading Commonwealth Bank's monthly index on household spending was unchanged in July with consumers finding ways to get thrifty at the checkout. While spending in seven of the bank's 12 categories rose in July, it was offset by reduced spending in other areas.
Hospitality took the biggest hit, with spending in the category down 2.6 per cent for the month, however this was on the back of a 3.5 per cent rise in June.
Consumers spent on fast food outlets and food delivery services, but cut back at cafes, pubs, wineries and takeaway food, the index found. Spending on utilities was down 1.3 per cent in July, even before the government's electricity rebate scheme had come into effect.
Commonwealth Bank said the impact of the was likely to be seen in the months ahead. There were modest increases in some areas of spending, led by consumers who were prioritising discounts. Spending on household goods saw the biggest increase of the categories, up 1.
3 per cent for the month. Consumers were spending big at online marketplaces, discount department stores and beauty stores but were reducing their spend at furniture stores and luxury boutiques. CBA chief economist Stephen Halmarick said shoppers were getting thrifty in July.
"We're also seeing changes in shopping behaviours within categories, as consumers look for cheaper alternatives, like second-hand bargains and discount store sales," he said. Recreation spending increased 0.9 per cent in the month, which the bank said was likely fuelled by major sporting events like the Spending on online travel bookings, airlines and ticketing services was partially offset by reduced transactions for accommodation, cinemas and cruise lines.
The insights are based on the de-identified payments from 7 million CBA customers, which the bank says represents about 30 per cent of all Australian consumer transactions. Spending was weakest in the ACT, where it fell 1.5 per cent in July.
The territory also remained the weakest jurisdiction for annual spending changes, up just 2.8 per cent. Across the country renters were feeling the pinch.
Their spending rose just 0.3 per cent for the year to July, compared with mortgage holders whose spending rose 3.3 per cent.
Those who own their home outright were the biggest spenders, up 4 per cent. "Spending by renters remains close to flat this year with significantly more cutbacks on discretionary spending compared to homeowners or those with a mortgage," Mr Halmarick said. It was still too early to see how consumers were spending the extra funds they will have thanks to .
Mr Halmarick said changes in spending behaviour would likely emerge in the next few months. Brittney is part of the federal political bureau, covering politics, the public service and economics. Brittney joined The Canberra Times in 2021 and was previously the property reporter.
Got a news tip? Get in touch: [email protected].
au Brittney is part of the federal political bureau, covering politics, the public service and economics. Brittney joined The Canberra Times in 2021 and was previously the property reporter. Got a news tip? Get in touch: brittney.
[email protected] Advertisement Sign up for our newsletter to stay up to date.
We care about the protection of your data. Read our . Advertisement.
