Key Points

• Consumer spending, according to NAB’s transaction data, remained resilient in August, rising 0.8% m/m overall. Estimated spending in July was also revised up, now showing an increase of 1.1% m/m. Retail spending was more subdued but still grew 0.4% m/m.
• Discretionary spending rose in the month while non-discretionary spending eased, with fuel price movements contributing to the discretionary spending rise. Both categories rose in three-month average terms.
• Business credits eased -0.2% m/m in August, or -0.4% when excluding mining and agriculture.

Comments from NAB Chief Economist Alan Oster

• “Our monthly transaction data continues to suggest spending has been resilient, with July and August both showing fairly strong growth in consumer spending overall.”
•  “Spending has continued to grow across retail categories as well as in key discretionary sectors such as arts, recreation & travel. There was also a large rise in spending on fuel in August as petrol prices rose in the month.”
• “Spending on essential services like healthcare, education and utilities fell in the month with energy subsidies possibly playing some role, though other factors are likely also contributing to the volatility here.”

For further details please see NAB Monthly Data Insights (August 2023)