"Spending has been softer as the year progresses"
Total spending in May 2024 fell by 0.3% month-on-month but rose by 1.2% over the past three months and 5.1% year-on-year, according to the latest NAB Monthly Data Insights.
Retail spending fell by 0.2% month-on-month due to a 0.2% decrease in goods retail. There was little change in spending on cafes and restaurants. Total retail spending was up by 0.8% in three-month average terms and 4.2% year-on-year.
Spending increased in household goods (0.7%) and other retail (0.4%), remained unchanged in department stores, and decreased in food (-1.0%) and clothing (-0.6%). Overall goods retail spending was up 0.8% in three-month average terms and 4.1% year-on-year.
Hospitality spending rose by 0.1% month-on-month, up 0.8% in three-month average terms and 4.6% year-on-year. Spending on vehicles and fuel rose 0.2% in May, with a 0.5% increase in fuel offset by a 0.3% fall in vehicles.
The NAB report also showed that spending on essential services fell 0.8% month-on-month, with health and care remaining unchanged. Spending on education, utilities, and media and communication all fell. Overall, spending on essential services was up 2.1% over the past three months and 8.6% year-on-year.
Meanwhile, spending across goods categories declined by 0.1% month-on-month, while spending across services dropped by 0.4%. Non-discretionary spending decreased 0.7% month-on-month, with discretionary spending remaining steady.
In May, spending was steady in New South Wales and Western Australia, and rose in other regions. In three-month average terms, spending growth was positive across all regions, led by Western Australia and Queensland.
“Our monthly transaction data suggest spending has been softer as the year progresses,” said Alan Oster (pictured above), NAB chief economist. “Consumers remain under pressure. Both our transaction data and consumer sentiment survey show that consumers are cutting back on spending, especially in non-discretionary expenses.
“While these data are nominal, they align with our view that consumption has remained subdued in Q2.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
