Overview

• Consumer spending, according to NAB’s transaction data, went down 0.3% in January, which was driven by a decrease in discretionary spending.
• Retail spending went down by 0.8% m/m after growing strongly in the last quarter of 2024. Total retail increased 1.4% in 3-month average terms and 4.7% over the past 12 months.
• Non-discretionary spending was broadly unchanged in January. Meanwhile, discretionary spending decreased 0.5%.
• Overall, consumer spending increased 1.3% in 3-month average terms and 4.9% over the past 12 months.
• Business credits decreased 0.7% in January after strong growth last month. Business credits increased by 7.5 % over the past 12 months, or 7.7% excluding mining and agriculture.

Monthly Consumer Spending

• Total spending declined 0.3% m/m. Overall, total consumer spending increased 1.3% in 3-month average terms and 4.9% over the past 12 months.
• Retail spending decreased 0.8%, which was driven by decreases in both goods retail (-0.4%) and cafes & restaurant (-2.3%).
• Spending on vehicles & fuel increased 0.2%, while spending on essential services and other spending grew 0.6% and 0.4% respectively.
• Total spending contracted in both goods (-0.3%) and services (-0.2%). Discretionary spending declined 0.5% while non-discretionary spending was broadly unchanged.

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