Consumption spending down 20% due to COVID-19 measures: NAB

NAB data shows dramatic falls in consumption-based spending and business payment inflows post COVID-19 containment measures, with the pace of decline continuing to accelerate quite rapidly across many industries.

Spending in the year to date has fallen heavily in all states and territories, with Victoria leading the way.

By industry sector, spending is down most in Administration & Support Services, Accommodation & Food Services and Transport, Postal & Warehousing, with Construction the only sector recording growth.

A handful of sub-industries have seen spending growth including - Internet Publishing & Broadcasting, Construction Services, Gambling Activities, Food Retailing and Building Cleaning & Pest Control. Business payment inflows into NAB merchants have also fallen sharply.

Corporates continue to outperform (particularly compared to medium and small business) and inflows remain positive, but have fallen steeply in April.

By industry, the hit to inflows has been most apparent in the Accommodation & Food Services (particularly Clubs, Pubs, Cafes, Restaurants & Takeaway Food) and Arts & Recreation Services (particularly Amusement & Other Activities and Sports & Physical Recreation) - sectors that have borne the brunt of forced business closures and social isolation measures.

Inflows are also down heavily in Mining.

Inflows are holding up best in Wholesale Trade - the only sector recording growth in inflows.

Other industries holding up comparatively well include Health Care & Social Assistance and Professional, Scientific & Technical Services, although payment incomes are well down on the previous month.

Big falls have also been recorded in parts of Retail including Clothing, Footwear & Personal Accessories, Department Stores and Motor Vehicles. Only two sub-sectors reported positive gains in payment inflows - Specialised Food Retailing & and Hardware, Building & Garden Supplies.

 Overall, consumption spending has fallen 19.5% (not seasonally adjusted) since the start of the year. Spending over the year to date has fallen heavily in all states and territories. The steepest falls over the year to date are in VIC (-23.0%), followed by the ACT (-20.7%), WA (-20.5%) and NSW (-20.4%). Spending is currently holding up best in TAS (-14.9%) and the NT (-15.0%).

During these extraordinary times we have taken the decision to publish aggregated customer datacategorised by industry segment with the view of helping to provide clarity around which segments of theeconomy have been most affected by the broader macroeconomic trends at play. NAB takes data privacy veryseriously. All customer transaction data has been aggregated and no individual’s data is specificallyidentified or analysed as part of this process. The data used in this report will not be sold or made publiclyavailable, but insights from the data will be shared with the Australian people.NAB data shows dramatic falls in consumption-based spending and business payment inflows post COVID-19containment measures, with the pace of decline continuing to accelerate quite rapidly across manyindustries.Spending in the year to date has fallen heavily in all states and territories, with Victoria leading the way. Byindustry sector, spending is down most in Administration & Support Services, Accommodation & FoodServices and Transport, Postal & Warehousing, with Construction the only sector recording growth. Ahandful of sub-industries have seen spending growth including - Internet Publishing & Broadcasting,Construction Services, Gambling Activities, Food Retailing and Building Cleaning & Pest Control.Business payment inflows into NAB merchants have also fallen sharply. Corporates continue to outperform(particularly compared to medium and small business) and inflows remain positive, but have fallen steeply inApril. By industry, the hit to inflows has been most apparent in the Accommodation & Food Services(particularly Clubs, Pubs, Cafes, Restaurants & Takeaway Food) and Arts & Recreation Services (particularlyAmusement & Other Activities and Sports & Physical Recreation) - sectors that have borne the brunt offorced business closures and social isolation measures. Inflows are also down heavily in Mining.Inflows are holding up best in Wholesale Trade - the only sector recording growth in inflows. Otherindustries holding up comparatively well include Health Care & Social Assistance and Professional, Scientific& Technical Services, although payment incomes are well down on the previous month.Big falls have also been recorded in parts of Retail including Clothing, Footwear & Personal Accessories,Department Stores and Motor Vehicles. Only two sub-sectors reported positive gains in payment inflows -Specialised Food Retailing & and Hardware, Building & Garden Supplies