CONSUMER spending across the country has eclipsed the same week in 2019 by 20%, as strict COVID-19 lockdowns eased.
According to weekly credit and debit card spending data from Commonwealth Bank for the week ending 29 October, spending in-store and on services indicates national levels returning to that seen at the beginning of the year.
This resurgence of spending follows several consecutive months of declines in retail spending, with sales in August down 1.7% and turnover lagging behind the previous year.
“We are seeing the economic engine rev higher again as people get out and about, catching up on lost time with friends and family,” said Stephen Halmarick, chief economist at Commonwealth Bank.
Back in late April through early May, prior to NSW’s delta variant outbreak, spending was on average 22% above the same time in 2019, which is regarded as the most recent typical pre-COVID year.
Spending in NSW was in the week ending 29 October 23.3% above the comparable week in 2019, largely driven by hospitality and transportation.
South Australia was the only state or territory to experience a slowdown in spending growth over the week, though Victoria was the only state that sat below 20% above 2019 rates.
In Victoria, spending was up 10% on the same week in 2019 and up 1.2% on the week prior, with the state accounting for almost half of the country’s spending growth for the week.
Spending on eating out in Victoria was also up 20% compared to the previous week, with spending on drinking up 30%.
“Victorian retailers welcomed back shoppers this weekend, and we anticipate that will translate into stronger spending on clothing, footwear and general retail in next week’s report as it had done in NSW as lockdown ended,” added Halmarick.
The report also noted that while pent up demand has driven up in-person spending, online spending has not been compromised as a result.
“This is a pleasing indicator of underlying economic strength as consumers who have delayed their purchases during lockdown are now rushing back to the market,” said Halmarick.
