Invest
Construction sector flourishes prior to government announcement
Australia is set for a two-speed recovery, with consumers swapping their local pubs for tools prior to the Morrison government’s announcement of the HomeBuilder stimulus, consumer spending data has shown.
Construction sector flourishes prior to government announcement
Australia is set for a two-speed recovery, with consumers swapping their local pubs for tools prior to the Morrison government’s announcement of the HomeBuilder stimulus, consumer spending data has shown.
Under the Morrison scheme, eligible property owners could receive $25,000 in government support if they are completing a renovation project between $125,000-$750,000.
However, analysis from Zip on its 1.8 million users showed that Australians began renovating their homes in May, well before the government’s package was announced.
“We have been particularly interested in the bolstering of spend in the past quarter on building and renovation, which is interesting in light of the recent government stimulus package,” Zip co-founder Peter Gray said.
The data revealed a 133 per cent increase in security and safety system installation, while spending on trade services was up 30 per cent.
“Security installation, roofing, gardening, outdoor home improvement and home pools and spas all saw significant increases in consumer spending in May 2020, while trade services like electricians, plumbers and painters were all sought after,” Zip’s report noted.
While many of these jobs might not have been large enough to qualify for the government’s $125,000 scheme, research by Zip showed the industry was well supported prior to government intervention.
The reopening of beaches was also a major win for surf schools as Australians looking for a new hobby spent 102 per cent more on surf schools.
“As beaches began to open, first for exercise, and then later in the month for leisure, goods and services related to the beach saw spikes in spend. Surf schools were uncharacteristically popular during the coldest months of autumn, with consumers spending double what they usually would during May in 2020 compared to 2019,” Zip said.
Gyms, fitness centres, pubs, bars and taxis are all the most heavily impacted sectors, according to the research.
The hospitality industry has been left to struggle due to lockdown measures.
“Forced to pivot significantly during May, spending in pubs and bars, cafes and restaurants remains significantly lower than seasonal averages. While adaptive models have helped reclaim some of the lost revenue, the gap won’t be closed until lockdown measures are completely pulled back,” Zip’s research has shown.
While restaurants (down 19 per cent) and cafes (down 39 per cent) saw some resurgence in May 2020 (compared with April 2020, down 38 per cent and 53 per cent, respectively), spending at pubs and bars in May 2020 (down 74 per cent) remained at similarly low levels to April 2020 (down 79 per cent), the report concluded.
Did you enjoy this article? You may also be interested in:
About the author
About the author
Economy
New Zealand reveals travel bubble arrangement with Australia
New Zealand Prime Minister Jacinda Ardern has announced that the country will begin a quarantine-free travel bubble with Australia within a fortnight. ...Read more
Economy
RBA reveals April cash rate call
The Reserve Bank of Australia has made its April call on the official cash rate, following its decision to cut the rate to a record low in November. ...Read more
Economy
Melbourne closes in on Sydney’s population growth
Melbourne is hot on the heels of Sydney’s population growth, as it inches closer to taking over as the country’s biggest city since Sydney established itself as the most populous back in the early...Read more
Economy
NAB’s neobank acquisition gets ACCC green light
NAB has been shown the green light to complete its acquisition of Aussie neobank 86 400 in a $220 million deal. ...Read more
Economy
PM reshuffles cabinet to raise the role of women
Prime Minister Scott Morrison has announced a new cabinet as part of a reshuffle aimed at resetting the gender debate that has ensued as a result of a string of recent scandals. ...Read more
Economy
Economic recovery to slow, job losses set to rise
The Treasury department believes the economic recovery from the COVID-19 pandemic will be moderate, while job losses will rise when the JobKeeper subsidy ends. ...Read more
Economy
Post-JobKeeper stimulus with focus on tourism announced
Australian travellers will be offered half-price flights following the federal government’s announcement of a $1.2 billion stimulus package to support the domestic tourism sector. ...Read more
Economy
Women and COVID: Where men glow and women suffer
Not only have women been at the frontline of Australia’s response to the coronavirus pandemic – nearly four in five workers in health care and social assistance are women – but they’ve borne t...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Economy
New Zealand reveals travel bubble arrangement with Australia
New Zealand Prime Minister Jacinda Ardern has announced that the country will begin a quarantine-free travel bubble with Australia within a fortnight. ...Read more
Economy
RBA reveals April cash rate call
The Reserve Bank of Australia has made its April call on the official cash rate, following its decision to cut the rate to a record low in November. ...Read more
Economy
Melbourne closes in on Sydney’s population growth
Melbourne is hot on the heels of Sydney’s population growth, as it inches closer to taking over as the country’s biggest city since Sydney established itself as the most populous back in the early...Read more
Economy
NAB’s neobank acquisition gets ACCC green light
NAB has been shown the green light to complete its acquisition of Aussie neobank 86 400 in a $220 million deal. ...Read more
Economy
PM reshuffles cabinet to raise the role of women
Prime Minister Scott Morrison has announced a new cabinet as part of a reshuffle aimed at resetting the gender debate that has ensued as a result of a string of recent scandals. ...Read more
Economy
Economic recovery to slow, job losses set to rise
The Treasury department believes the economic recovery from the COVID-19 pandemic will be moderate, while job losses will rise when the JobKeeper subsidy ends. ...Read more
Economy
Post-JobKeeper stimulus with focus on tourism announced
Australian travellers will be offered half-price flights following the federal government’s announcement of a $1.2 billion stimulus package to support the domestic tourism sector. ...Read more
Economy
Women and COVID: Where men glow and women suffer
Not only have women been at the frontline of Australia’s response to the coronavirus pandemic – nearly four in five workers in health care and social assistance are women – but they’ve borne t...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
