Overview

• Consumer spending, according to NAB’s transaction data, declined in April after showing a fall in March. The decline was driven by services spending categories, including hospitality, construction, and arts, recreation & travel.
• Discretionary spending declined noticeably in the month, while non-discretionary spending was flat. However, both discretionary and non-discretionary spending grew in three-month-average terms.
• Business credits fell 0.1%, but the data showed a 0.5% increase when excluding mining and agriculture. Credits are up 5.4% from a year ago, with only gradual growth over recent months.

Comments from NAB Chief Economist Alan Oster

“Our monthly transaction data showed another small fall in spending in April (in seasonally adjusted terms), largely driven by discretionary services categories.”

“The April result follows a similar fall in our data in March although this result wasn’t reflected in the ABS’s retail sales release, owing to important differences in these series’ measurement. Regardless, the ongoing softness in our transaction data suggests there is some slowing in consumer spending.”

“Our consumer transaction data is a nominal measure, and falling prices may be driving some of the weakness including adjustments occurring in goods and travel prices as pandemic effects recede.”

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