NAB’s transaction data revealed that consumer spending fell by 0.3% in September, a shift from the 0.9% increase recorded the previous month.
“While consumer spending has declined this month, it remains strong in the broader context, with a 0.9% increase over the past three months and a 3.2% rise year-on-year,” said Alan Oster (pictured above), NAB Group chief economist.
Discretionary spending remained stable, while non-discretionary spending dropped 0.8%.
However, over the past three months, total spending saw a 0.9% rise, and it grew 3.2% over the last year.
Retail spending dropped by 0.6%, reflecting declines in both goods retail and dining at cafes and restaurants. Goods spending specifically fell by 0.8%, while services saw a modest 0.3% increase. Essential purchases like vehicles and fuel also took a hit, with vehicle-related spending down by 2.1%.
Retail spending saw notable declines in department stores (-3.5%) and other retail categories (-1.3%).
Spending on food and clothing dropped slightly by 0.3% and 0.4%, respectively, while household goods spending remained steady.
Despite these drops, total retail spending increased 1% over the past three months and 4% year-over-year. In hospitality, spending was up by 1.3% over the last three months and 3.7% annually, NAB reported.
Non-retail spending saw a significant drop in vehicle and fuel expenditures, with fuel spending falling by 3.5%. Essential services spending also declined by 0.3%, primarily driven by a 4.4% reduction in utility bills, attributed to energy relief measures.
However, education and health services experienced growth, with education spending rising 1.9% and health and care up 1%.
Business credit growth continued in September with a modest 0.4% increase. The mining sector led with a 6.9% rise, followed by a 5.8% increase in other services.
However, sectors like utilities and wholesale trade experienced declines of 2.6% and 2.1%, respectively. Over the last 12 months, business credits grew 6.8%, or 8.5% when excluding mining and agriculture, NAB reported.
For more details, visit the NAB website.
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