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

Australian Mortgage Market Reaches Record $2.41 Trillion

10 Feb 2026: Paige Estritori

In November 2025, Australia's mortgage market achieved a new milestone, with the total value of residential mortgages reaching $2.41 trillion. This record-breaking figure reflects a 0.67% increase from the previous month and a 6.36% rise over the past year, as reported by the Australian Prudential Regulation Authority (APRA). - read more

Australian Homeowners Embrace Refinancing Amid Rate Cuts

10 Feb 2026: Paige Estritori

The Australian mortgage market has witnessed a significant surge in refinancing activity, with nearly 100,000 loans refinanced in the June 2025 quarter. This marks the highest level since September 2023 and reflects homeowners' proactive responses to recent interest rate cuts by the Reserve Bank of Australia (RBA). - read more

Major Australian Lenders Tighten Policies on Trust and Company Lending

10 Feb 2026: Paige Estritori

In a significant shift within Australia's financial sector, major lenders Macquarie Bank and the Commonwealth Bank of Australia (CBA) have recently implemented stricter policies regarding lending to trusts and companies. These changes reflect a broader trend towards more cautious lending practices in response to regulatory concerns and market dynamics. - read more

RBA Reports Significant Surge in Business and Home Lending

10 Feb 2026: Paige Estritori

Recent data from the Reserve Bank of Australia (RBA) indicates a notable acceleration in both business and home lending, challenging earlier predictions of a potential slowdown. As of December 2024, business credit growth reached 8.9%, marking the highest rate since May 2023. Similarly, investor housing credit surged to 5.1%, achieving its highest rate since December 2022. - read more

Renown Lending Boosts SME Funding Pool to $400 Million

10 Feb 2026: Paige Estritori

In a significant move to bolster support for small and medium-sized enterprises (SMEs) across Australia, Renown Lending has announced an expansion of its funding pool from $250 million to $400 million. This substantial increase aims to provide fast and flexible financing solutions to businesses nationwide, addressing the growing demand for accessible funding options. - read more

Click for more Finance News