Cautious women consumers reign in spending

Our latest Viewpoint report provides a revealing insight into the trends behind the recent weakness in retail spending. Produced in partnership with the University of Canberra’s National Centre for Social and Economic Modelling (NATSEM), the report shows that Australian women are particularly wary about the economy and are cautious about taking on debt.

The report found that:

There is a clear disparity in each gender’s perception of the state of the economy. 39% of men said they believed the economy was strong, while only 21% of women agreed.

Women were also less positive regarding the future of the economy, with 24% believing it is on a downslide, compared to 21% of men.

According to Commonwealth Bank Chief Economist, Michael Blythe, the Viewpoint survey not only shows that men and women have different views of the economy, but that those views are reflected in sales results.

“The divergence between retail and non-retail spending trends, where women and men’s spending dominate respectively, correlates with the divide in gender sentiment,” he said. “Department store sales, for example, where women are responsible for 59% of spending, are soft. And this softness is linked to the less positive sentiment of female consumers.”

The report notes a number of possible reasons underlying women’s more cautious view of the economy. Women still earn less than men on average, with many relying on their partners for financial support. And, since they are still most likely to cease work to take care of children, women have just 20 years of peak earning, compared to 40 years for men.

As more women are responsible for household spending, they are more aware of rising household costs, shaping their perceptions of the economy. Among couples surveyed, women took the lion’s share of responsibility for grocery spending (69% compared to 20% of men) and purchases for children (65%, compared to just 10% of men).

Michael Blythe points out that this cautious attitude is also evident in other Viewpoint findings. 

“Some 50% of women would use a $5,000 present to reduce personal debt, rather than spend or save the gift”, he says. “And significantly more women than men (29% compared to 20%) would struggle to meet an unexpected expense of $5,000 within a week.”

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