Overview

• Consumer spending, according to NAB’s transaction data, declined 0.3% m/m after a rise last month. Consumer spending is up 5.1% over the past 12 months.
• Total spending in May decreased in both goods (-0.1% m/m) and services (-0.4% m/m). Consumption in non-discretionary categories declined -0.7% m/m while discretionary spending remained steady.
• Business credits rose 0.7% m/m, led by Information and media (up 4.3%) and utilities (up 4.2%). Overall, business credits increased by 6.1% over the year, or 7.8% excluding mining and agriculture.

Comments from NAB Chief Economist Alan Oster

“Our monthly transaction data suggest spending has been softer as the year progresses.”

“Consumers remain under pressure. Both our transaction data and consumer sentiment survey show that consumers are cutting back on spending, especially in non-discretionary expenses.”

“While these data are nominal, they align with our view that consumption has remained subdued in Q2.”

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