Aus economy: hopping into recovery mode

Adelaide Timbrell

Senior Economist, ANZ

Inflation is still not hitting spending as Australians looked forward to a restriction-free break over the Easter school holidays.

Click image to zoom Tap image to zoom

ANZ-observed spending excluding petrol for the week to 14 April was up 9 per cent year-on-year (before an expected dip during the Easter public holidays).

"Confident households are keen to travel. Google searches for cheap flights to Sydney and Melbourne have tripled since January.”

Click image to zoom Tap image to zoom

Spending data before Easter and interest in inflation

Non-food retail was up 6 per cent year-on-year while dining was up 4.5 per cent year-on-year during the week to 14 April.

Confident households are keen to travel. Google searches for cheap flights to Sydney and Melbourne have tripled since January and so has ANZ-observed travel agent spending.

Click image to zoom Tap image to zoom

Strong spending on accommodation and transport (including local car services, public transport services and airfares) signals households are not slowing down discretionary spending, despite heightened awareness of inflation.

Click image to zoom Tap image to zoom

Local discretionary spending on dining and entertainment has also risen quickly since January.

Click image to zoom Tap image to zoom

Other local social spending is trending up

Interestingly, central business district (CBD) visitors are coming back faster than workers.

Weekday café transactions still show workers are keen to stay home although CBD accommodation spending is rapidly improving.

Click image to zoom Tap image to zoom

Weekday cafe and shopping transactions are up in CBD

Click image to zoom Tap image to zoom

Shopping in-store in Melbourne and Sydney is also drifting up. The national share of shopping, dining and grocery spending that occurs online seems to have stabilised.

Click image to zoom Tap image to zoom