According to NAB’s transaction data, consumer spending has remained steady, with total spending on both goods and services flat.
Despite this, discretionary spending saw a modest increase of 0.6% month-on-month, while non-discretionary spending declined by 1%.
The decrease in non-discretionary spending was primarily due to a significant drop in expenditure on utilities and fuel.
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Annual growth in consumer spending
Consumer spending is up 5.6% over the past 12 months. However, consumption growth has softened since the beginning of this year, according to Alan Oster (pictured above), group chief economist at NAB.
Business credits on the rise
Business credits saw a modest increase of 0.4% month-on-month, led by significant growth in sectors such as wholesale trade (3.4%), rental and real estate (2.6%), and health (2.2%).
Over the past 12 months, business credits have risen by 7.1%, or 8.7% excluding mining and agriculture.
Total spending remained unchanged in June but showed a 0.9% increase over the past three months and a 5.6% increase over the past twelve months.
Retail spending increased by 0.5% month-on-month, with gains in both goods retail (0.5%) and cafes & restaurants (0.4%).
Spending on vehicles and fuel saw a decline of 2.8%, and spending on essential services fell by 0.3%.
Overall, non-discretionary spending decreased by 1% month-on-month, while discretionary spending rose by 0.6%.
“Total spending across both goods and services remained unchanged,” Olsen said.
For further details, please see NAB Monthly Data Insights (June 2024).
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