Other generations navigate the economic landscape with far greater caution
Young Western Australians are bucking the trend of economic caution, with Bankwest’s latest Spend Trends Report revealing a surge in Gen Z spending on flights and other discretionary items, despite a broader cost-of-living crisis.
Bankwest’s Spend Trends, which monitors credit and debit activity among Western Australia customers, highlighted a 24% year-on-year increase in the number of Gen Z customers spending on airlines in July. This growth contrasts sharply with other generations, where spending either declined or remained stable (Millennials -4%, Gen X +3%, Baby Boomers -2%).
Gen Z also showed increased spending in other discretionary sectors, with transactions at discount stores rising by 16% and at electrical appliance retailers by 11%. In contrast, spending in these categories either fell or remained flat for older generations.
Overall, the number of Gen Z customers spending across all 25 tracked categories grew by 5.8% year-on-year, with Millennials, Gen X, and Baby Boomers all seeing declines of around 4% to 5%.
Gen Z’s spending patterns also included a 10% increase in transaction volume and an 11% rise in the average value of those transactions. This contrasts with the more restrained spending behaviour of Millennials, who saw a 1.4% drop in transaction volume and only a 4% increase in transaction value.
The report also noted a generational divide in spending at service stations, with the number of Gen Z customers rising by 5%, while spending by Millennials, Gen X, and Baby Boomers dropped by around 10-11% year-on-year. Even at essential food stores, Gen Z spending increased by 8%, while the other generations cut back.
The Bankwest report underscores the broader cost-of-living pressures faced by Millennials, Gen X, and Baby Boomers, who reduced spending in the majority of sectors. In contrast, Gen Z experienced declines in only five categories: department stores, education, other transport, recreation, and repair shops.
“Bankwest’s latest Spend Trends Report shows Gen Z is defying cost-of-living challenges, showcasing their resilience and adaptability,” said Peter Bouhlas (pictured above), general manager of products and digital services at Bankwest. “The increases in spending on airline and electrical appliance retailers by young Western Australians could reflect a new wave of consumer confidence within this demographic, as they outpace other generations in key sectors.
“However, while Gen Z’s spending has soared, this month’s report reveals a divergence in spending behaviours, with other generations having to navigate the economic landscape with far greater caution.
“We can see from the data that the experience of Gen Z is not that of most Western Australians, and we encourage any customers concerned about their circumstances to reach out so we can support their unique position.”
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