Bankwest’s latest Spend Trends analysis revealed a stark decline in spending among Western Australians due to rising cost-of-living pressures.
Data from March 2024 showed a dramatic year-on-year fall, with spending activity considerably lower compared to the same month in 2023.
The Bankwest analysis, which tracked 25 industries – all of which saw double-digit declines – showed that repair shops, education sectors, and sporting/toy stores witnessed the steepest drops, down 50%, 35%, and 34% respectively in customer numbers.
“Such a significant decline year-on-year indicates that Western Australians have become very selective with where and how they spend their money,” Peter Bouhlas (pictured above), Bankwest general manager products and digital services, said in a media release.
Despite the decline in the number of transactions, the average value of transactions in March 2024 remained relatively stable compared to March, suggesting that prices for goods and services have not significantly changed.
However, the month-on-month data from February to March tells a more positive story, with a 45% surge in customer transactions.
Sectors such as hardware, education, and auto rental led the rebound, showing increases of 56%, 54%, and 54% respectively. This uptick might reflect a growing financial confidence as residents adjust to economic pressures.
Bouhlas emphasised the dual nature of the current economic landscape.
“We can see from the increases from February to March this year that Western Australians are still willing to spend, and the growth could indicate an increase in financial confidence as they adapt to the conditions,” he said.
Bouhlas also reassured customers facing financial difficulties, encouraging them to reach out for support:
“Bankwest is committed to being there for its customers, and I urge anyone who is facing – or is concerned they could face – financial difficulties to contact us so we can support their individual circumstances,” Bouhlas said.
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