CBA Card Spending Data Points To Continued Household Strength

Late on Monday, CBA noted that their “internal household spending card data for the week ending 8 April signals continuing strength in the household sector. In the fortnight to 8 April, spending growth in all states rose indicating that higher COVID caseloads have not materially dampened overall spending. In the fortnight, South Australia recorded the strongest pick up with all other states also showing spending has significant momentum. The strength across the national household sector is coinciding with an exceptionally tight labour market, providing further evidence that the economy is running hot. Inflationary pressures are accumulating which could be contributing to the increased spending. However, the key takeaway at present is the continued strength of the household sector. Consumer concerns about inflation and upcoming official interest rate hikes do not seem to be translating into dampened spending at present, though it is a risk in the medium term.”

• “Nationally by industry, spending growth on transport fell in the week to 8 April, coinciding with the cut in the fuel excise announced in the Federal Budget. Education spending surged though it is dependant on the timing of university fee due dates, making it volatile. Spending on clothing and footwear continues to be elevated. Recreation remains strong though it has levelled off at elevated levels after recent momentum. Dining and drinking out edged lower though remain at elevated levels, and online spending has been stronger than in store over the last month with COVID case numbers at relatively high levels nationwide.”