Overview

• Consumer spending, according to NAB’s transaction data, was broadly steady in February, up 0.1% m/m, after a strong rise in January. Growth in retail spending was also subdued.
• Discretionary spending declined slightly, while non-discretionary spending rose in the month.
• Business credits were also broadly steady, declining 0.2% m/m.

Comments from NAB Chief Economist Alan Oster

“Our monthly transaction data suggest spending was more subdued in February after a reasonably strong pickup to start the year in January.”

“Retail spending looks like it was reasonably flat in the month, which could reflect a mix of price movements as well as volumes, though hospitality spending was a bright spot with strong growth in cafes & restaurants.”

“With the volatile Christmas period now in the rear-view mirror, we can start to get a bit of a clearer picture and it appears consumers remained under pressure in early 2024.”

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