The CommBank Household Spending Insights (HSI) Index remained unchanged in July at 148.2, as consumers focused on finding discount options.
“We’re seeing changes in shopping behaviours, with consumers looking for cheaper alternatives, like second-hand bargains and discount store sales,” said CBA chief economist Stephen Halmarick (pictured above).
While overall spending was flat, modest increases were recorded in categories like household goods (+1.3%) and recreation (+0.9%).
“The busy sporting calendar, including events like the NRL State of Origin and Wallabies rugby tests, likely boosted recreational spending,” Halmarick said.
See LinkedIn post here.
Household spending saw the biggest declines in hospitality (-2.4%), utilities (-1.3%), and food and beverage (-1.2%).
“Hospitality spending has been the weakest category over the past year, as consumers cut back on visits to cafes and bars,” Halmarick said.
The survey highlighted a stark disparity in spending between renters and homeowners.
Spending by renters increased just 0.3%
compared to 3.3% for mortgage holders and 4% for outright homeowners.
“Renters are making more cutbacks on discretionary spending,” Halmarick said.
Halmarick noted it’s too early to gauge the impact of the federal government’s income tax cuts on spending.
“We expect a clearer picture over the coming months,” Halmarick said, adding that softer economic data and inflation deceleration may lead to RBA rate cuts soon.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
