Overview

• Consumer spending, according to NAB’s transaction data, remained steady with spending on both goods and services flat.
• Discretionary spending was up 0.6% m/m while spending on non-discretionary declined 1%. The decrease in non-discretionary expenditure was due to a large fall in consumer’s spending on utilities and fuel.
• Consumer spending is up 5.6% over the past 12 months. However, consumption growth has softened since the beginning of this year.
• Business credits rose 0.4% m/m, led by Wholesale trade (3.4%), Rental and Real Estate (2.6%) and Health (2.2%). Overall, business credits increased by 7.1% over the past 12 months, or 8.7% excluding mining and agriculture.

Monthly Consumer Spending

• Total spending was unchanged in June 2024 but was up 0.9% over the past three months and 5.6% over the past twelve months.
• Retail spending was up 0.5% m/m, with increases in both goods retail (0.5%) and cafes & restaurants (0.4%).
• Spending on vehicles & fuel and essential services declined 2.8% and 0.3% respectively while other spending remained unchanged.
• Total spending across both goods and services remained unchanged. Non-discretionary spending decreased 1% m/m while discretionary spending was up 0.6%.

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