Spending for recreation sees significant drop
For the fifth consecutive month, spending has declined among Western Australians, with Bankwest’s Spend Trends report for May showing further pullbacks in discretionary sectors amid ongoing cost-of-living pressures.
The report, which tracks customer credit and debit activity to provide insights into community responses to economic conditions, has found that Western Australians are cutting back on non-essential spending.
The number of customers spending (-2.4%) and the volume of transactions (-1%) across all 25 sectors analysed declined year-on-year, with recreation falling a significant 17% in transaction volume. The category includes retailers offering services such as events, cinemas, bowling, and indoor leisure centres, suggesting that people have less money to spend on leisure activities.
Year-on-year declines were also observed in the number of customers spending at electric appliance (-9%) retailers and sporting/toy stores (-6%), highlighting the broader trend of reduced discretionary spending.
Only seven of the 25 sectors showed growth in the number of customers transacting year-on-year, but none were significant, with mail orders leading with just a 3% increase.
Despite the overall decline in transaction volumes, the average value of transactions grew 4% year-on-year. Bankwest noted that this indicates that Western Australians are paying more for less compared to last year. The leading sectors for increased average transaction value included essential services like utilities (7%) and pharmacies (6%), highlighting the financial strain on households.
“We can see from the May Spend Trends data that Western Australians are now being really selective in where they spend their money,” said Peter Bouhlas (pictured above), general manager of products and digital services at Bankwest. “A 17% decline year-on-year for recreation is a significant fall, and we can see across the board that the vast majority of sectors are experiencing customer and transaction volume declines.
“A positive in the data is in the majority of sectors showing a stabilisation — and, in some cases, a reduction — year-on-year in the average value of transactions, which indicates cost-of-living pressures might be softening. That is perhaps not a surprise when considering the customer and volume declines, with reduced demand and spending capacity naturally likely to have a flow-on effect for prices.
“We know the current economic environment is challenging for many people, and if there are any customers experiencing financial difficulties, I urge them to get in touch with us as soon as possible so we can support them.”
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.
