Consumers spending their disposable dollars on experiences: NAB

Consumers spending their disposable dollars on experiences: NAB
Consumers spending their disposable dollars on experiences: NAB

Arts, music and eating out have emerged as the favourite spends for Australians looking for experiences to spend their disposable dollars on, according to new data released by NAB. 

The Customer Spending Behaviours report, based on around 2.7 million daily consumer transactions, found creative services such as performing arts and music had the fastest growth at 35.3 per cent followed by accommodation and food at 26.7 per cent. Experiences include buying theatre and concert tickets, eating at cafes and restaurants and staying at hotels.

NAB chief economist Alan Oster said the report gave an important insight into household budgets across the country. The report analysed the spending behaviours of its customers, excluding things such as mortgages, other credit repayments and government services.

“By examining such a large number of daily transactions, we can show where spending is growing fastest, even down to a postcode, and what our customers are spending it on,” Oster said. 

Click to enlarge

Consumers spending their disposable dollars on experiences: NAB

Click to enlarge

Consumers spending their disposable dollars on experiences: NAB

The report also found consumers had boosted their average monthly spending during the quarter to $2,064 in metropolitan areas ($1,997 in Q1 2017) and $1,918 in regional areas ($1,866 in Q1 2017). 

In addition, it showed spending on consumption-based goods and services by NAB customers grew by 3.9 per cent over the year to Q2 2017, accelerating from 2.0 per cent over the year to Q1 2017. 

“Customer spending growth improved in all metropolitan and regional areas (except Tasmania), with overall spending growth in regional areas continuing to outpace cities,” Oster said. 

“Perhaps lower mortgage debt in regional areas is freeing up more disposable income for these consumers resulting in faster growth.” 

Click to enlarge

Consumers spending their disposable dollars on experiences: NAB

Oster said retail trade is still a key part of the spending patterns but growth is increasingly coming from consumers wanting to head out to have meaningful experiences. 

“We can see consumers are getting out of the house, spending their disposable income on eating out, staying at hotels and enjoying music and the performing arts,” Mr Oster said. 

“This was particularly seen in Victoria, where growth was fastest in the suburbs of Hurstbridge and Garfield, followed by Quakers Hill in NSW.” 

Customer spending growth improved in Q2 2017 in all metropolitan and regional areas (except TAS). By state, VIC, NSW and QLD contributed around 98% of total growth in customer spending in Q2. Growth was fastest for Arts & Recreation and Accommodation & Food. 

Tags: 
Nab Consumer Spending

Comments

Be the first one to comment on this article
What would you like to say about this project?