As the economy progressively reopens, household spending continues to lift modestly.
- CommBank credit and debit card spend data for the week ending 19 June shows that a continued recovery in spending on services is driving the overall improvement.
- Consumers are slowly returning to in-store shopping.
- Card spending in all states and territories is now higher than in the same period a year ago (note that a shift from cash to card spend flatters the annual growth rates).
Analysis of CommBank credit and debit card spend data to 19 June shows continued modest recovery.
Spending on goods has consolidated at an elevated level (up 22% from last year’s levels) while spending on services continues to recover from the slump in April and is now 8% below the same period last year.
Combined, total spending on goods and services is up 7% from the same week a year ago.
Spending by category
Spending on food goods (primarily at supermarkets and grocery stores) has plateaued at an elevated level, running at 24% above the same period last year. Spending on food services (cafes, restaurants, etc) has picked up as restrictions on eating out have been eased. Spending on food services is now 9% higher than the same time last year.
Spending on alcohol services (drinking at hotels, pubs and clubs) is running 17% below last year’s levels but the trend continues to improve. Spending on alcohol goods (bottle shops) remains very strong, running at 42% above the same period last year.
Household furnishings and equipment spending remains high too, at 42% above the same period last year.
Spending on clothing and footwear and personal care looks to be stabilising after a sharp improvement over May and in early June. Spending in hairdressers, barbers and beauty salons is 13% above last year’s levels, while spending on apparel is up 7% from the same time last year.
The spending pulse on transport and recreation has improved, but both remain lower in annual terms. Spending on transport is 7% lower than last year’s levels as people continue to work from home and avoid public transport, while spending on recreation such as accommodation, air travel and travel services, is down 9% from the same period a year ago.
Spending by channel
In-store card spending continues to improve as restrictions are eased.
Growth in CommBank in-store household card spending continues to track higher than in-store spending on CommBank merchant facilities. This reflects the impact that a lack of foreign tourists is having on overall expenditure.
Why is this information helpful?
CommBank’s weekly credit and debit card spend data gives you an up-to-date picture of what people are spending their money on and how this is changing as the coronavirus continues to impact 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 household 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. Data has not been adjusted for effects of consumers substituting between cash and card payments. CBA merchant facility spend data is derived from the Merchant Acquiring System which includes net sales from both CBA and Other Financial Institution (OFI) domestic and international cards
Source: Commonwealth Bank of Australia, Global Economic & Markets Research report “CBA Card Spend – ending 19 June 2020”, published 23 June 2020, author Kristina Clifton. Full Global Economic & Markets Research disclaimers can be found at www.commbankresearch.com.au.