But year-on-year, it has risen by 5.2%
There was minimal change in consumer spending in February, with a month-on-month increase of just 0.1%, following a more robust growth of 1.6% in the previous month.
New data from the National Australia Bank (NAB) has revealed that total consumer spending is up 0.4% in three-month-average terms, and on a year-on-year basis, it has risen by 5.2%.
The report also showed a slight 0.2% month-on-month increase in retail spending, primarily fuelled by a surge in spending at cafes and restaurants, while spending on goods remained unchanged. Over a three-month average, retail spending saw a 0.6% increase, with a year-on-year growth of 4.5%.
Essential services saw a 0.6% rise in spending month-on-month, with vehicles and fuel spending seeing a significant 1.8% increase.
There was a 0.3% increase in spending across goods categories, while services spending dropped by 0.2%. There was a slight decline in discretionary spending, in contrast to a rise in non-discretionary categories.
Read more: Businesses brace for impact as consumer spending drops
Business credits saw a slight decrease of 0.2% in February, with January’s decline adjusted to a less severe 0.3%. The three-month average showed business credits were up by 0.6%, with a 5.5% increase year-on-year.
“Our monthly transaction data suggest spending was more subdued in February after a reasonably strong pickup to start the year in January,” said Alan Oster (pictured), NAB chief economist.
“Retail spending looks like it was reasonably flat in the month, which could reflect a mix of price movements as well as volumes, though hospitality spending was a bright spot with strong growth in cafes & restaurants.
“With the volatile Christmas period now in the rear-view mirror, we can start to get a bit of a clearer picture and it appears consumers remained under pressure in early 2024.”
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