Overview

• Consumer spending, according to NAB’s transaction data, rose 0.4% in October with a strong increase in retail (up 1.2%) in the month.
• Non-discretionary spending decreased 1.2% due to lower fuel costs and energy bill relief. Meanwhile, discretionary spending rose 1.3%, led by increases in spending on household goods, department stores and arts & recreation.
• Overall, consumer spending increased 1.3% in 3-month average terms and 5% over the past 12 months.
• Business credits declined 1.3% m/m. Overall, business credits increased by 5.8% over the past 12 months, or 7.1% excluding mining and agriculture.

Monthly Consumer Spending

• Total spending increased 0.4% m/m. Overall, total consumer spending increased 1.3% in 3-month average terms and 5% over the past 12 months.
• Retail spending went up 1.2% after a decrease of 0.3% last month, with matching increases in both goods retail and cafes & restaurants.

• Spending on vehicles & fuel and essential services decreased 2.8% and 2.1% respectively while other spending went up 1.1%.
• Total spending on goods increased 0.6% and spending on services was broadly unchanged. Discretionary spending rose 1.3% while non-discretionary spending declined 1.2%.

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