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Card data indicates massive fall in spending

Card data indicates massive fall in spending

The following article has been developed by the Global Economic & Markets Research team.

Coronavirus is dramatically impacting the way we live, work and socialise. This can be seen in weekly CBA card spend data.

  • CBA credit and debit card spending data shows that spending in the week ending 17 April is down 18% from the same week a year ago
  • The level of spending was similar to the previous week, after large falls in the three weeks prior. It’s too early to call a trend but it may be that spending is settling at this lower level
  • Household furnishings and equipment is one of the category where spending is up from the same period last year

CommBank’s weekly analysis of CBA credit and debit card spending indicates that the fall in household spending is broad-based and includes some areas that aren’t directly impacted by the government-imposed shutdown.

Download infographic (JPG)

Category

% change on year

Food

Although overall spending on food is below last year’s levels, spending on food to be consumed at home (as opposed to consumed in cafés or restaurants) is 12.2% higher than a year ago.

-5%

Alcohol

Spending on alcohol is now below last year’s levels which may be a result of the drop in spending at hotels, pubs and bars far outweighing the lift in sales at bottle shops.

Spending on alcohol to be consumed at home is 4% higher than a year ago.

-25%

Household furnishings and equipment

The Easter holiday period may have helped spending in this area with people staying home and working on home DIY projects and redecorating rather than going away on holidays.

+34%

Clothing and footwear

People are largely staying at home so there is less need to spend money on these goods. And there is less opportunity to consume these goods with many shops closed.

-58%

Personal care (beauty and barber shops, massage parlours, etc)

People are largely staying at home so there is less need to look good. And there is less opportunity to consume these services with many hairdressers, spas, etc, closed.

-58%

Medical care & health

-34%

Transport (including public transport)

Due to large numbers of workers working from home, and the reduction in activity and the movement of people more generally.

-46%

Recreation (including accommodation, air travel and travel services)

-37%


Why is this information helpful?

CommBank’s weekly CBA credit and debit card spend data gives you indication of what people are spending their money on and how this is changing as Coronavirus impacts our world and the economy.

We will be providing further updates to help you understand the impact that the virus is having on businesses and the broader economy.

Note: Weekly CBA credit & debit card spend data is derived from transaction authorisations to give a near real-time view. This means that cancelled authorisations, refunds, reversals, etc will not be included. 

Source: Commonwealth Bank of Australia, Global Economic & Markets Research report “CBA Card Spend – week ending 17 April 2020”, published 20 April 2020, author Kristina Clifton. Full Global Economic & Markets Research disclaimers can be found at www.commbankresearch.com.au.

 

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