Invest
Economy set to benefit from retail boost
The Australian economy is predicted to get a much-needed boost through the retail sector, with income tax refunds and improved housing market pushing consumers towards spending.
Economy set to benefit from retail boost
The Australian economy is predicted to get a much-needed boost through the retail sector, with income tax refunds and improved housing market pushing consumers towards spending.
The latest data from the Commonwealth Bank Household Spending Intentions series shows positive signals for the Australian economy, with spending intentions holding at “respectable” levels or moving higher in every sector covered, except for motor vehicles.
The bank’s chief economist, Michael Blythe, has also identified spending intentions as improving.
“Significantly, the home buying spending intentions series has moved back into positive territory and this should help drive a further improvement in retail spending intentions in the months ahead,” Mr Blythe said.
According to Commbank’s analysis:
Retail spending – The lift in retail spending intention has moved back into positive territory, with consumers looking to spend their tax refunds.
Travel spending intention – The lift in travel spending intentions suggests the tax refund boost and the turn in the housing market will impact positively on broader consumer spending trends.
Home buying spending intention – Investors are looking to get back into the market with buying intentions accelerating. The household spending intention is at the upper end of a historic range with improving house prices.
Education spending intention – Education spending–related intentions appear unchanged and have carried through strong momentum into the latest period.
Entertainment spending intention – As with the lift in travel spending intention, the improvement in entertainment spending is being triggered by the tax refund and improving housing market more broadly.
Motor vehicle spending intention – The motor vehicle spending intention remains subdued, with vehicle spending proving particularly susceptible to the negative wealth effect from earlier falls in dwelling prices.
Health and fitness spending intention – Health and fitness spending intentions remain largely unchanged, with the household spending intention remaining at average levels.
About the author
About the author
Spending
It should be easier to fix your phone, Productivity Commission finds
The Productivity Commission has found that it should be easier for Australians to get their smartphone repaired and has recommended changes that include ‘super complaints’ to be reported to watchd...Read more
Spending
You can win free flights for a year, but there’s a major catch
In a bid to keep Australia’s domestic aviation afloat, Qantas is offering free flights for a year for 10 families of four who get the COVID-19 jab, even though the failed vaccine rollout means only ...Read more
Spending
Why you should spend $10 a week on Australian-made products
The pandemic was a wake-up call for Australians, with more looking to shop locally, creating a huge economic boost, new research has revealed. ...Read more
Spending
Consumers set to spend following budget sentiment boost
The announcement of last week’s budget and containment of the COVID-19 threat in Sydney is seeing surging consumer confidence, which is tipped to lead to an increase in spending, according to two ba...Read more
Spending
Aussie mums want a spa day but will get flowers this Mother’s Day
Australians are set to splash the cash for mum this Mother’s Day, albeit on the wrong gift, new consumer spending data has revealed. ...Read more
Spending
Aussie consumers swap credit for BNPL
Shoppers are continuing to swap credit cards for buy now, pay later service, new consumer debt study has revealed. ...Read more
Spending
What did Aussies spend their super on?
Aussies who took advantage of the controversial early access to super scheme spent the majority of their money on mortgages, rent and household bills, with just one in eight saving their super for a r...Read more
Spending
Consumer spending set to boost economic recovery
Australia’s recovery from the COVID-19 downturn looks to be buoyed by a wave of consumer spending, as Aussies increase their spending habits post-lockdown restrictions, new studies have revealed. ...Read more
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Dissecting the budget and what it means for your equities, property and super
Listen now
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Spending
It should be easier to fix your phone, Productivity Commission finds
The Productivity Commission has found that it should be easier for Australians to get their smartphone repaired and has recommended changes that include ‘super complaints’ to be reported to watchd...Read more
Spending
You can win free flights for a year, but there’s a major catch
In a bid to keep Australia’s domestic aviation afloat, Qantas is offering free flights for a year for 10 families of four who get the COVID-19 jab, even though the failed vaccine rollout means only ...Read more
Spending
Why you should spend $10 a week on Australian-made products
The pandemic was a wake-up call for Australians, with more looking to shop locally, creating a huge economic boost, new research has revealed. ...Read more
Spending
Consumers set to spend following budget sentiment boost
The announcement of last week’s budget and containment of the COVID-19 threat in Sydney is seeing surging consumer confidence, which is tipped to lead to an increase in spending, according to two ba...Read more
Spending
Aussie mums want a spa day but will get flowers this Mother’s Day
Australians are set to splash the cash for mum this Mother’s Day, albeit on the wrong gift, new consumer spending data has revealed. ...Read more
Spending
Aussie consumers swap credit for BNPL
Shoppers are continuing to swap credit cards for buy now, pay later service, new consumer debt study has revealed. ...Read more
Spending
What did Aussies spend their super on?
Aussies who took advantage of the controversial early access to super scheme spent the majority of their money on mortgages, rent and household bills, with just one in eight saving their super for a r...Read more
Spending
Consumer spending set to boost economic recovery
Australia’s recovery from the COVID-19 downturn looks to be buoyed by a wave of consumer spending, as Aussies increase their spending habits post-lockdown restrictions, new studies have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
