Young Western Australians from Generation Z are bucking the cost-of-living pressures that their older counterparts are facing, according to Bankwest’s latest Spend Trends report.
“It’s clear the current economic environment is proving challenging for most Western Australians, particularly those with a mortgage,” said Peter Bouhlas (pictured above), Bankwest GM products and digital services.
The June data from Bankwest’s Spend Trends revealed a significant contrast in spending behaviours.
While Millennials, Gen X, and Baby Boomers saw a decline in the number of customers transacting year-on-year (-8%, -7.4%, and -7.2% respectively), Gen Z saw a 2.5% increase.
“This data shows the economic environment that is putting so much pressure on older generations is having very little effect on the spending behaviours of younger Western Australians,” Bouhlas said.
Gen Z also increased their transaction volumes by 6% year-on-year, the only generation to show an increase.
The average value of Gen Z’s transactions grew by 15%, double that of any other generation. This indicated that the increase in spending is not solely due to cost-of-living pressures.
“Gen Z is the generation most likely to comprise the casualised workforce and is less likely to have the significant financial responsibilities of their older counterparts at this stage in their lives,” Bouhlas said.
The Spend Trends data showed that Gen Z’s spending grew in 15 of the 25 tracked sectors, in contrast to declines across most sectors for other generations.
The travel industry saw significant benefits, with Auto rental (+32%) and airline (+17%) spending up year-on-year among Gen Z. Essential sectors like pharmacies (+14%) and food stores/warehouses (+7%) also saw increased spending by Gen Z, unlike the declines seen in other age groups.
Bouhlas emphasised the unique position of Gen Z in the current economic climate.
“We know from the low unemployment rate that businesses are crying out for workers, so that means there is a generation of young Western Australians in high demand for work, with fewer spending obligations,” he said.
He encouraged customers concerned about their financial circumstances to reach out for support.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
