CommBank Household Spending Insights July 2024

CommBank Global Economic & Markets Update podcast

The first look at household spending in July showed no change according to the CommBank Household Spending Insights series. The index was flat in seasonally adjusted terms, with annual growth sitting at 4.5% in original terms. Chief Economist, Stephen Halmarick and Belinda Allen, Senior Economist dive into the details in the latest podcast and note there was no noticeable impact from the start of income tax cuts on 1 July. A wide divergence in category performance remains in place with insurance and health top performers with hospitality and household goods at the bottom. The outlook for consumer spending remains constrained, with the tailwind from pent up savings due to be over by end of 2024. We expect interest rate cuts will be needed to see a meaningful lift in consumer spending.

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Before listening to this podcast, you are advised to read the full Global Economic & Markets Research (GEMR) disclaimers, which can be found at www.commbankresearch.com.au. Information in this podcast is of a general nature only. It does not take into account your objectives, financial situation or needs and does not constitute personal financial advice. This podcast provides general market-related information, and is not investment research and nor does it purport to make any recommendations. The information contained in this podcast is approved and distributed by Global Economic & Markets Research (GEMR), a business division of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (“the Bank”). The information is solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or other financial products. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Where ‘CBA data’ is cited, this refers to the Bank proprietary data that is sourced from the Bank’s internal systems and may include, but not be limited to, home loan data, credit card transaction data, merchant facility transaction data and applications for credit. The data used in the ‘Commonwealth Bank Household Spending Intentions’ series is a combination of the CBA Data and publically available ABS, CoreLogic and RBA data. As analysis is based on CBA customer transactions, it may not reflect all trends in the market. All customer data used or represented in this podcast is anonymised before analysis and is used, and disclosed, in accordance with the Bank’s Privacy Policy. The Bank believes that the information in this podcast is correct and any opinions, conclusions or recommendations made are reasonably held and are based on the information available at the time of its compilation. The Bank makes no representation or warranty, either expressed or implied, as to the accuracy, reliability or completeness of any statement made.