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CommBank weekly card spending data shows broad-based bounce

CommBank weekly card spending shows broad based bounce

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

  • CommBank household credit and debit card spend data for the week ending 4 September was up 5% from the same period a year ago. In the previous week, the year-on-year lift was 1%
  • A bounce in household spending on furnishings and equipment, transport and other miscellaneous goods and services contributed most to the uplift in spending
  • Spending lifted across all states and territories, with the uplift most marked in Tasmania and South Australia, however consumer spending in Victoria is unlikely to rebound meaningfully until November

In the week that ended Friday 4 September, spending on goods was up 18% from the same week last year, while spending on services was down 7%. Total annual spending growth has been bouncing around 5% since late July. 

The restrictions in Victoria are predominantly weighing on the services division of the state economy, namely eating and drinking out, and personal care. As a consequence, spending on clothing and footwear is also very weak. 

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Spending by channel

Card spending, both in-store and online improved over the week. Combined, our merchant facility and credit and debit card data suggest that in-store spending may have reached a gentle turning point. 

Spending by state

Annual spending growth rose across all states and territories. 

Annual spending growth lifted by between 3% and 4% across the major states of New South Wales, Victoria, Queensland and Western Australia. The escalation of restrictions in Victoria in July and August has led to spending outcomes diverging from New South Wales by around 20%. We expect the difference in spending outcomes to continue for coming months as restrictions are due to be eased only very gradually.

In Tasmania and South Australia annual spending growth was up by around 8% and 7%, respectively over the week. Spending in the ACT and Northern Territory rose by around 2%. 

Spending by categories

Household furnishings and equipment has so far been one of the components of consumer spending that has benefited most from changing spending habits due to COVID-19. Spending growth in this category rebounded sharply during the week that ended 4 September. 

One category worth watching is spending on eating out. There remains a clear divergence between Western Australia and Queensland where there is low or no community transmission, New South Wales, where some community transmission and social distancing requirements remain, and Victoria where a stage 4 lockdown continues. 

Why is this information helpful?

CommBank 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 lives 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.

Source: Commonwealth Bank of Australia, Global Economic & Markets Research report “CBA Card Spend – ending 4 September 2020”, published 8 September 2020, author Nic Guesnon. Full Global Economic & Markets Research disclaimers can be found at www.commbankresearch.com.au. 

Important Information: This report provides general market-related information, and is not intended to be an investment research report. This report has been prepared without taking into account your objectives, financial situation (including the capacity to bear loss), knowledge, experience or needs. It is not to be construed as a solicitation or an offer to buy or sell any securities or financial instruments, or as a recommendation and/or investment advice. Before acting on the information in this report, you should consider the appropriateness and suitability of the information to your own objectives, financial situation and needs, and, if necessary seek appropriate professional or financial advice, including tax and legal advice. Commonwealth Bank of Australia (the “Bank”) believes that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made in this report. Any opinions, conclusions or recommendations set forth in this report are subject to change without notice and may differ or be contrary to the opinions, conclusions or recommendations expressed elsewhere by the Bank or any member of the Commonwealth Bank of Australia group of companies. Any valuations, projections and forecasts contained are based on a number of assumptions and estimates and are subject to contingencies and uncertainties. Different assumptions and estimates could result in materially different results. The Bank does not represent or warrant that any of these valuations, projections or forecasts, or any of the underlying assumptions or estimates, will be met. Past performance is not a reliable indicator of future performance. Where ‘CBA data’ is cited, this refers to the Bank proprietary data that is sourced from the Bank’s internal systems and may include, but not be limited to, credit card transaction data, merchant facility transaction data and applications for credit. The Bank takes reasonable steps to ensure that its proprietary data used is accurate and any opinions, conclusions or recommendations are reasonably held or made as at the time of compilation of this report. As the statistics take into account only the Bank’s data, no representation or warranty is made as to the completeness of the data and it may not reflect all trends in the market. All customer data used, or represented, in this report is anonymised and aggregated before analysis and is used, and disclosed, in accordance with the Group’s Privacy Policy Statement.