Below trend growth to continue
Consumption spending growth resumed in the week ending 9 January, up 4.1% on the same week last year.
In this podcast, NAB Chief Economist, Alan Oster gives you a 10 minute summary of our analysis of consumer spending.
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Welcome to our first Data Insights note for 2021. Despite the normal end of year volatility (with big spikes leading into Christmas and the traditional contraction thereafter), consumption spending growth resumed in the week ending January 9 – up 4.1% on the same week last year. Spending grew in all states (bar the ACT), led by the NT and WA, with VIC in the middle of the pack and NSW affected by lockdowns. Retail spending activity was relatively robust, but Hospitality spending appears to have suffered on the back of lockdowns.
Payment inflow credits were up around 5% from the same time last year in 6-week moving average terms (and only slightly weaker when removing JobKeeper). By business size, Corporates are again seeing the strongest increases (about 11%), with the rest (bar emerging firms) experiencing relatively flat to moderate growth. By industry sector, payment inflows grew fastest into Arts & Recreation and Education & Training. Mining inflows shrunk with Accommodation & Food Services also still poor.
For further details please see NAB Data Insights 14 December 2020 Report
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