Overview

• Consumer spending, according to NAB’s transaction data, rose 0.2% after being flat last month. Consumer spending is up 5.7% over the past 12 months.
• Strong performance in goods retail (up 1.1%) boosted consumption in April. However, the growth was partially offset by the contraction in spending on vehicles and fuel (down -0.5%) and other spending (down -0.7%).
• Business credits rose 1.7% m/m, led by utilities (up 4.9%). Overall, business credits increased by 5.4% over the year, or 7.2% excluding mining and agriculture.

Comments from NAB Chief Economist Alan Oster

“Our monthly transaction data suggest spending ticked up after a stagnant performance last month.”

“However, the decreased m/m growth across the past 3 months in most categories elaborates on the trend of consumer’s targeted cutbacks shown in our recent consumer sentiment survey. Consumers remain under pressure, cutting back on eating out, services and making fewer car trips to save fuel.”

“We expect subdued spending to continue at least through the first half of the year before inflation eases further.”

For further details please see NAB Monthly Data Insights (April 2024)