Overview

• Consumer spending, according to NAB’s transaction data, was broadly steady in both retail and total spending. There is no sign of a surge in consumption post the July tax cuts yet. Our survey data shows that most people (70%) intend to put their extra money from tax cuts aside to save, pay down debt or invest instead of spending.
• Non-discretionary spending was up 0.4% m/m while spending on discretionary declined 0.4%.
• Consumer spending is up 0.9% in the past 3 months and 4.8% over the past 12 months.
• Business credits slightly declined by 0.2% m/m. Overall, business credits increased by 7% over the past 12 months, or 8.9% excluding mining and agriculture.

Monthly Consumer Spending

• Total spending was broadly unchanged in July but went up 0.9% over the past 3 months and 4.8% over the past 12 months.
• Retail spending was flat, with increases in goods retail (0.2%) offset by a decrease in cafes & restaurants (-0.3%).
• Spending on vehicles & fuel went up 1.1% while spending on essential services and other spending declined 0.5% and 0.9% respectively.
• Total spending on goods went up 0.3% while spending on services decreased 0.6%. Non-discretionary spending was up 0.4% m/m while discretionary spending went down 0.4%.

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