Economy's Chill: Aussie Consumers Tighten Purse Strings Further

5

⚠ The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Fresh insights have emerged from two significant reports. The first came from the Australian Bureau of Statistics (ABS), which unveiled April's Household Spending Indicator (HSI). This vital measure represents nearly two-thirds of total household expenditure.

Justin Fabo of Antipodean Macro provided charts showing the ABS HSI, indicating that nominal spending growth remained sluggish in April. More worryingly, the spending numbers in discretionary sectors, which are often seen as indicative of consumer confidence, appeared particularly feeble.

It’s worth noting that these charts measure spending in nominal terms. Adjusting for population and inflation would show an even steeper decline in real per capita spending, painting a more concerning picture.

Meantime, Westpac released its own data on consumer activity via the Card Tracker Index. This index tracks the vast volume of daily credit and debit card transactions processed by the bank. Recent findings are not encouraging.

According to the latest figures, the Westpac Card Tracker Index dipped by 2.2 points in the final two weeks of May, landing at 132.7 as of the week ending June 1. The downward trend has been persistent, with the average reading for the past eight weeks falling by approximately 0.5 points compared to the preceding eight weeks.

The quarterly growth pulse recorded a conspicuous negative rate of -1.1%, indicating substantial contraction in economic activity when adjusted for inflation.

When looking at the state-level breakdown, a uniformly broad decline is evident, though Western Australia shows somewhat milder quarterly decreases. Despite this slight regional resilience, the overall story remains grim.

The detailed assessment of HSI and Card Tracker Index data suggests that real per capita household consumption, as captured in the national accounts, continues to plummet.

The narrative is clear-Australian households are navigating through an intractable recession without a foreseeable short-term respite.

Published:Sunday, 9th Jun 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Promoting Safe and Responsible Boating: BIA's New Initiative

16 Dec 2025: Paige Estritori

The Boating Industry Association (BIA) has recently unveiled a significant initiative aimed at fostering responsible boat ownership across Australia and New Zealand. This campaign, launched during Safe Boating Week 2025, is a collaborative effort under the Australia New Zealand Safe Boating Education Group (ANZSBEG), which includes maritime regulators and peak bodies from both nations. - read more

Addressing Skills Shortages: BIA's Call for Government Action

16 Dec 2025: Paige Estritori

The Boating Industry Association Ltd (BIA) has issued a compelling appeal to all levels of Australian government, emphasizing the urgent need for strategic support to bolster the nation's esteemed marine manufacturing and recreational boating sector. This call to action arises amidst a significant skills shortage that poses a threat to the industry's economic vitality and growth potential. - read more

Celebrating Marine Innovation at the Sydney International On-Water Boat Show

16 Dec 2025: Paige Estritori

The 56th Sydney International On-Water Boat Show recently concluded after four dynamic days at Darling Harbour, drawing over 20,000 visitors and highlighting the latest advancements in marine design and technology. Presented by the Boating Industry Association (BIA) and Mulpha Events, the event featured more than 160 vessels from 120 leading international and Australian marine brands. - read more

Urgent Call for Government Support in Australia's Marine Manufacturing Sector

30 Nov 2025: Paige Estritori

The Boating Industry Association Ltd (BIA) has recently issued a compelling appeal to all levels of Australian government, emphasizing the urgent need for strategic support to bolster the nation's esteemed marine manufacturing and recreational boating sector. This call to action arises amidst a significant skills shortage that poses a threat to the industry's economic vitality and growth potential. - read more

Australia's Marine Industry Set for Unprecedented Growth by 2030

30 Nov 2025: Paige Estritori

At the 2025 Sydney Boat Show, the Boating Industry Association (BIA) unveiled the National Recreational Boating Statement, providing a comprehensive overview of the sector's current status and future projections. This landmark report highlights the substantial economic and social contributions of Australia's marine industry and outlines ambitious growth forecasts leading up to 2030. - read more

Australia Partners with Japan for Advanced Naval Frigate Program

30 Nov 2025: Paige Estritori

In a significant development for Australia's naval defense strategy, the Australian Government has officially selected Japan's New FFM design for its new general-purpose frigate program. This decision marks a pivotal step in enhancing the Royal Australian Navy's capabilities and underscores the strengthening defense collaboration between Australia and Japan. - read more

Click for more Finance News