Black Friday sales drive small uptick in household spending: ABS
Household spending increased again in November with six out of nine spending categories increasing, according to data from the Australian Bureau of Statistics.
The Monthly Household Spending Indicator for November increased by 0.4 per cent following the 0.9 per cent rise in October and the 0.2 per cent fall in September.
ABS head of business statistics, Robert Ewing, said Black Friday sales boosted spending in recreation and culture by 0.9 per cent, making it the largest contributor to overall spending growth.
"Spending in cinemas continued to grow strongly, with major releases such as Wicked, Gladiator II and Moana 2 all opening in November," Ewing said.
"Spending on Clothing and footwear and Furnishings and household equipment also rose by 1.8 per cent and 0.8 per cent respectively."
Growth in these categories drove the 0.4 per cent rise in discretionary spending, according to the ABS.
"Strength in new vehicle purchases also contributed to higher discretionary spending, with the Federal Chamber of Automotive Industries reporting a notable rise in SUV sales in November," Ewing said.
Household spending in November grew across most states and territories. The highest percentage rises were seen in Queensland, up 0.7 per cent, Victoria at 0.5 per cent, South Australia at 0.5 per cent and Western Australia with a 0.5 per cent increase.
The ACT and Tasmania both fell 0.4 per cent and 0.2 per cent, respectively.
While the Black Friday sales did help increase household spending levels in November, the retail sales during this period still fell below expectations.
AMP economist My Bui said November’s retail sales still “disappointed” despite the 0.8 per cent increase in retail turnover during the month.
Bui said this was evidence of a “very gradual” recovery in consumption, driven by wages growth and the labour market.
AMP deputy chief economist Diana Mousina said the monthly household spending indicator for November fell below expectations of a 0.7 per cent increase and aligns with the softer-than-expected retail data.
"In real terms, the household spending indicator is flat over the year which indicates that overall consumer spending growth is anaemic," Mousina said.
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