Overview

• NAB has shifted to a new monthly consumer spending and business credits publication, allowing us to develop a clearer picture of trends in the data at a critical period for the economy.
• Consumer spending rose 1.0% in September, continuing the run of strong positive results over recent months. Retail spending and other spending remained strong while essential services declined again.
• Retail spending increased 1.1% overall, with a robust 1.2% increase in goods retail and a softer 0.5% increase in hospitality after several months of strong growth in the latter.
• Business credits also increased 0.4% in September to be 15.8% higher y/y, with accommodation & food, utilities, retail trade, and information & media growing strongly over the past three months.

Comments from NAB Chief Economist Alan Oster

“Our new monthly consumer spending analysis shows spending has remained strong over recent months, supported by rebounding hospitality spending and discretionary spending on travel and other activities.”

“Strong ongoing price inflation continues to contribute to growth in the value of spending, but the strength in the data suggest consumption is still holding up in real terms as well – despite headwinds from rising interest rates.”

For further details please see NAB Monthly Data Insights (September 2022)