In this podcast, NAB Chief Economist, Alan Oster gives you a 10 minute summary of our analysis of consumer spending.

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Overview

Our second Data Insights report for 2021 shows consumption growth slowing in year on year terms this year, although remaining positive overall. Overall consumption was up 0.7% (year-on-year) for the week ending 23 January and up 4.3% for the week ending 16 January. The retail sector remains relatively robust, up 8% year-on-year, but hospitality is weaker, with accommodation spending hit hard, likely reflecting state border closures in response to outbreaks in NSW, Vic and Qld. By state, the NT is fastest growing, followed by WA and Vic and NSW, while Tas, Qld and the ACT saw spending contract.

Business inflows have risen by 9.2% in six week rolling average terms on same period last year. By business size, corporates are once again seeing the strongest increases (about 13%), with the rest (bar emerging firms), experiencing relatively flat to moderate growth. By industry sector, payment inflows were again strongest in Arts & Recreation and Education & Training.

For further details please see NAB Data Insights 23 January 2021 Report

*During these extraordinary times we have taken the decision to publish aggregated customer data categorised by industry segment with the view to helping provide clarity around which segments of the economy have been most affected by the broader macroeconomic trends at play. NAB takes data privacy very seriously. All customer transaction data has been aggregated and no individual’s data is specifically identified or analysed as part of this process. The data used in this report will not be sold or made publicly available, but insights from the data will be shared with the Australian people.