Invest
Holiday spending stunted by Omicron
Spending in the week after Christmas fell as much as 25 per cent.
Holiday spending stunted by Omicron
The spread of the Omicron variant of COVID-19 may have driven a significant reduction in spending across the country during the new year break.
Data released by ANZ indicated that overall spending in NSW in the week to 2 January was down 25 per cent compared to a year earlier, the biggest drop among all the states.
A fall of 19 per cent was recorded in Victoria and 17 per cent in Queensland, while spending in all other states fell by 15 per cent.
“The drop in spending after the key Christmas and Boxing Day trading was much sharper this year than in previous years,” said ANZ senior economist Adelaide Timbrell.
Dining and travel, particularly in Sydney and Melbourne, were among the most impacted spending categories towards the end of 2021.
The bank also found that online shopping had offset some of the impacts of Omicron.
“Higher rates of online spending, particularly for dining, show that both businesses and households are adjusting to iterative lockdowns, movement restrictions and COVID transmission caution by moving more spending online,” said Ms Timbrell.
“This could reduce the impact of iterative lockdown and movement restrictions in 2022 and may be behind Victoria’s smaller fall in spending in late 2021 compared with NSW, since Victorian businesses have more experience with lockdowns.”
Spending on key holiday shopping dates, including Christmas Eve, Black Friday and Cyber Monday, was lower than 2020 but remained above pre-COVID levels, according to ANZ.
Christmas Day spending increased slightly compared to previous years, while spending on Boxing Day fell for the second year in a row.
“Boxing Day sales are likely to keep falling as more households move their end of year sales spending to Black Friday,” noted Ms Timbrell.
The Commonwealth Bank previously forecast that $4 billion would be spent during the Boxing Day sales, while the Australian Retailers Association and Roy Morgan expected a total of $21 billion would be spent between Boxing Day and 15 January.
RELATED ARTICLES
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
