Overview

• Our data shows that spending was more subdued in the first two months of 2025 after a pickup in Q4 2024.
• Consumer spending, according to NAB’s transaction data, went down 0.3% in February, which was driven by a decrease in spending on services.
• Retail spending went up by 0.4% m/m after a decrease of 0.4% last month. Total retail increased 1.1% in 3-month average terms and 5.5% over the past 12 months.
• Non-discretionary spending decreased 0.3% and discretionary spending decreased 0.2%.
• Overall, consumer spending increased 1.3% in 3-month average terms and 4.7% over the past 12 months.
• Business credits decreased 2.2% in February. Business credits increased by 8.9% over the past 12 months, or 8.7% excluding mining and agriculture.

Monthly Consumer Spending

• Total spending declined 0.3% m/m. January m/m growth was revised from -0.3% to 0.5% for total spending and from -0.8% to -0.4% for retail due to additional spending captured. Overall, total consumer spending increased 1.3% in 3-month average terms and 4.7% over the past 12 months.
• Retail spending went up 0.4%, which was driven by increases in both goods retail (0.3%) and cafes & restaurant (0.6%).

• Spending on vehicles & fuel decreased 1.6%. Spending on essential services and other spending also declined 0.5% and 1.2% respectively. Insurance spending is included from this month and is categorised as essential services and non-discretionary.

• Services spending declined 0.6% while goods spending was broadly unchanged. Discretionary spending decreased 0.2% and non-discretionary spending fell 0.3%.

For further details please see NAB Monthly Data Insights (February 2025)