NAB Customer Spending Behaviours: Q2 2018

Total NAB customer spending grew 5.6% y/y in Q2 2018, down from 6.8% in the previous quarter and 3.9% in the same quarter a year ago. It grew faster in metropolitan (6.5%) than regional (5.1%) areas.

By

Hobart, Melbourne and Sydney out-performed in metro areas, and SA and VIC led the way in regional areas. Average monthly spending in metro areas was highest in Sydney ($2,286) and Melbourne ($2,258), while WA ($2,126) and QLD ($2,009) were the highest spending regional areas, By category, spending grew fastest for Accommodation & Food (with double-digit rates of growth in all states) and weakest for Arts & Recreation, driven down by lower spending on performing arts. By age, customer spending growth was fastest for 18-29 year olds – and in nearly all spending categories – perhaps reflecting greater use of electronic payment methods than older customers.

Highlights:

  • What does this report measure? It measures the spending patterns of our customers. By examining around 2.7 million daily transactions, it shows where spending is growing fastest and what customers are spending on. Given the size of NAB’s customer base, it provides an indication of national and regional trends.
  • Is spending growing? Total NAB customer spending grew by 5.6% y/y in Q2 2018 (down from 6.8% in Q1 2018, but up from 3.9% in Q2 2017). Spending in metropolitan areas grew 5.9% (6.9% in Q1 2018 & 3.3% in Q2 2017), ahead of a 5.1% increase in regional areas (6.6% in Q1 2018 & 4.9% in Q2 2017).
  • Where is spending growing fastest in capital city areas? Spending grew in all capital city metropolitan areas in Q2 2018. The rate of growth was slower than the previous quarter in all cities (bar in Hobart & Darwin). Relative to the same period last year however, growth was stronger in all cities (bar Darwin and ACT). Growth in Q2 was fastest in Hobart (7.6%), Melbourne (6.6%), Sydney (6.5%), Adelaide (6.2%) and ACT (5.5%). Brisbane (3.6%), Darwin (3.7%) and Perth (5.2%) were slowest.
  • What about in regional areas? Spending slowed in all regional areas relative to Q1 2018 (except in TAS). Against the same period last year, growth was faster in VIC, SA, WA and TAS. It was slower in QLD and the NT and unchanged in NSW. Spending growth was fastest in SA (7.0%), VIC (6.4%) the NT (5.2%), NSW (5.1%) and TAS. It was slowest in QLD (4.2%), and WA (4.5%).
  • How much are we spending? Average monthly spending in metro areas was $2,206 in Q2 2018, up from $2,150 in Q1 2018 and $2,064 in Q2 2017. In regional areas, it was $1,992, up from $1,947 in Q1 2018 and $1,918 in Q2 2017. WA is still the only state where spending is higher in regional ($2,126) than metro ($2,122) areas.
  • Who’s spending the most in metro areas? Sydney ($2,286) and Melbourne ($2,258) led the way, followed by Perth ($2,122) and Brisbane ($2,112). Spending was lowest in Darwin ($1,965), Hobart ($2,050) and Adelaide ($2,080).
  • What about in regional areas? Average monthly customer spending was highest in WA ($2,126), QLD ($2,009), NSW ($2,002), VIC ($1,947) and SA ($1,907. It was lowest in the NT ($1,587) and TAS ($1,864).
  • In what category did spending grow fastest? Accommodation & Food Services led the way (14.9%), followed by Transport, Postal & Warehousing (9.2%) and Finance & Insurance Services (7.8%). Spending was weakest for Arts & Recreation (-5.9%) driven down by lower spending on performing arts. Spending on Construction also fell (-1.7%).
  • In what age groups is spending growing fastest? Spending growth among 18-29 year olds was faster across nearly all spending categories, perhaps reflecting greater use of electronic payment methods than older customers.

For further details, please see the attached document: