Australian Internet Loans
For Fast, Flexible Online Loan Quotes
Australian Internet Loans :: News
SHARE

Share this news item!

Economy's Chill: Aussie Consumers Tighten Purse Strings Further

Economy's Chill: Aussie Consumers Tighten Purse Strings Further

Economy's Chill: Aussie Consumers Tighten Purse Strings Further?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The economic climate in Australia seems to be cooling down even further as new data reveals that consumer spending continues to contract sharply.
This downturn indicates a deeper recession gripping Aussie households.

Fresh insights have emerged from two significant reports. The first came from the Australian Bureau of Statistics (ABS), which unveiled April's Household Spending Indicator (HSI). This vital measure represents nearly two-thirds of total household expenditure.

Justin Fabo of Antipodean Macro provided charts showing the ABS HSI, indicating that nominal spending growth remained sluggish in April. More worryingly, the spending numbers in discretionary sectors, which are often seen as indicative of consumer confidence, appeared particularly feeble.

It’s worth noting that these charts measure spending in nominal terms. Adjusting for population and inflation would show an even steeper decline in real per capita spending, painting a more concerning picture.

Meantime, Westpac released its own data on consumer activity via the Card Tracker Index. This index tracks the vast volume of daily credit and debit card transactions processed by the bank. Recent findings are not encouraging.

According to the latest figures, the Westpac Card Tracker Index dipped by 2.2 points in the final two weeks of May, landing at 132.7 as of the week ending June 1. The downward trend has been persistent, with the average reading for the past eight weeks falling by approximately 0.5 points compared to the preceding eight weeks.

The quarterly growth pulse recorded a conspicuous negative rate of -1.1%, indicating substantial contraction in economic activity when adjusted for inflation.

When looking at the state-level breakdown, a uniformly broad decline is evident, though Western Australia shows somewhat milder quarterly decreases. Despite this slight regional resilience, the overall story remains grim.

The detailed assessment of HSI and Card Tracker Index data suggests that real per capita household consumption, as captured in the national accounts, continues to plummet.

The narrative is clear-Australian households are navigating through an intractable recession without a foreseeable short-term respite.

Published:Sunday, 9th Jun 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Macquarie Bank Named Money Minder of the Year 2025
Macquarie Bank Named Money Minder of the Year 2025
01 Jan 2026: Paige Estritori
In the 2025 Consumer Finance Awards, Macquarie Bank has been honoured as the Money Minder of the Year by Money magazine. This accolade highlights the bank's exceptional performance in managing Australians' savings and term deposits. - read more
Commonwealth Bank Recognised as Business Bank of the Year 2025
Commonwealth Bank Recognised as Business Bank of the Year 2025
01 Jan 2026: Paige Estritori
In the latest Consumer Finance Awards, Commonwealth Bank has been named Business Bank of the Year 2025 by Money magazine. This recognition reflects the bank's unwavering support for Australia's small and medium enterprises (SMEs). - read more
Macquarie Bank Honoured as Investment Property Lender of the Year 2025
Macquarie Bank Honoured as Investment Property Lender of the Year 2025
01 Jan 2026: Paige Estritori
Macquarie Bank has been awarded the Investment Property Lender of the Year 2025 by Money magazine, acknowledging its significant role in supporting Australia's property investors. - read more
Click for more Finance News



Finance Articles

Top Credit Repair Strategies: How to Overcome Bad Credit in Australia
Top Credit Repair Strategies: How to Overcome Bad Credit in Australia
Understanding the concept of creditworthiness is essential, especially when considering the various financial decisions you make in life. In Australia, a good credit score can open doors to competitive loan rates, favorable mortgage terms, and hassle-free approvals for financing. Conversely, bad credit can be a significant roadblock, impacting your financial well-being and limiting your access to financial resources when you need them most. - read more
The Ultimate Guide to Responsible Credit Card Use for a Stellar Credit Score
The Ultimate Guide to Responsible Credit Card Use for a Stellar Credit Score
In the financial landscape of Australia, credit scores stand as a crucial measure of one's financial health and credibility. A credit score, essentially a numerical representation of your creditworthiness, is used by lenders and financial institutions to determine the risk involved in lending to you. This score can range from 0 to 1200, where higher scores signify better credit health and an increased likelihood of securing loans with favorable terms. - read more
Fixed vs Variable: Which Interest Rate Option is Best for Your Personal Loan?
Fixed vs Variable: Which Interest Rate Option is Best for Your Personal Loan?
Understanding interest rates is crucial when it comes to managing your personal loans effectively. Interest rates dictate the cost of borrowing and can significantly influence your financial health over time. - read more
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.