Westpac Card Data Pointing To Weak Start To Q2 Consumption

The Westpac card tracker declined 7.9 points in the two weeks to May 6, signalling a substantial weakening in consumption. The series is not seasonally-adjusted and so looking through April holiday trends, Westpac notes that spending is essentially unchanged over April, which results in the index falling 0.9% 3m/3m. Card tracker data are pointing to a sharp contraction in real spending in Q1, as higher rates and the cost-of-living impact consumer decisions. Westpac cite tax-based measures also showing weaker spending and its index is showing weakness in the resilient non-retail sector. Q1 real consumption, including retail & services, will be released with the national accounts on June 7.