Growth, inflation and labour market all easing
We've seen a small (0.2%) increase in overall consumption spending, for the week ended October 10.
For the week ended October 10, NAB data showed a small (0.2%) increase in overall consumption spending. In VIC, the rate of spending decline accelerated – with lockdown areas (-16.2%) now back at levels last seen in late August despite improvements in case numbers since then. Spending also slowed in all other states bar NSW (where growth has levelled off), but remains highest in the NT and WA. In key industries, though slowing, Retail spending is still above the same week in the prior year. Hospitality spend continues to be dragged down by heavy falls in Accommodation spending, which offset small gains in Food & Beverage Services.
Business inflows were up 4.3% in 6-week rolling year-on-year terms in the period ending October 10 (unchanged from last week), but without JobKeeper is likely to have been closer to 2.4%. By business size, inflows increased most for SMEs and emerging firms. Hospitality continues to struggle, and was the only sector to recorded lower inflows this week. Inflows were strongest in Mining, underpinned by exploration and support services, followed by Manufacturing. Retail inflows were up almost 14% – its best result since mid-September – with Food Retailing leading the way.
For further details, please see NAB Data Insights 15 October 2020 Report
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