Introduction to Card Spending Trends
The country’s largest bank has released its latest report on card spending, revealing a 0.2% drop in customer spending last month on a seasonally-adjusted basis. This data is crucial in understanding the current state of consumer spending in the country.
Overview of Spending Habits
A detailed data pack compiled by ANZ chief economist Sharon Zollner provides insights into various spending categories. According to the report, durables spending is on the rise, but apparel and hospitality spending remains soft. However, the annual decline in these categories is easing. Nearly all store types saw annual growth in spending tick up again this month, with most now in positive territory in terms of year-on-year growth. Overall spending is up 1.5% compared to the same time last year.
Category-Specific Spending Trends
Breaking down the contributions of each category to total card spending growth, it’s evident that much of the annual lift is due to a significant jump in consumables spending, which is up 3% versus last year. Food price inflation of 4.4% year-on-year has had a substantial impact on this category. There’s also less of a drag from hospitality and housing durables.
Durables Spending
Durables spending is increasing, with a 2.7% growth in the past year. There’s a wide range of performance in this sector, but overall, spending growth is on the rise. Second-hand stores are achieving the highest annual growth in this category, suggesting that households may be "trading down" as they continue to watch their expenses. However, "birthday present" durables like musical instruments, bicycles, and book stores are still struggling.
Hospitality and Services Spending
The year-on-year decline in hospitality spending is easing, with a 0.3% lift this month. There’s evidence of "trading down" in this category as well, with fast food outperforming other forms of dining out. Card spend at bars is down, but spend at liquor shops is also declining, indicating that people are not just moving their social gatherings to their homes. The services category is mixed, but annual growth is positive at 0.7%. People are spending more on self-care, such as hair and carpet services, but opting for DIY photography.
Conclusion
In conclusion, the latest card spending report from the country’s largest bank provides valuable insights into consumer spending habits. While overall spending is up 1.5% compared to last year, the report highlights a mixed bag of trends across different categories. As the country’s biggest bank, these figures are a significant contributor to overall card spending nationwide, offering a glimpse into the nation’s economic health. Understanding these trends can help businesses and policymakers make informed decisions about the future.
