20 Jun 2022
Economic shorts: a new era of wages, labour
Catherine Birch |
As the cost of living continues to bite, will wages be able to keep up in a very tight labour market? And what about inflation?
8 Jul 2022
Aus economy: strong spending at sales, cinemas
Consumers flocked to the shops for end-of-financial-year sales, according to ANZ-observed spending data, with shopping spending rising 7.7 per cent on the final weekend of June compared with the weekend prior.
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“Average daily entertainment spending rose 14.2 per cent after a slight dip in May. Cinema spending was a particular standout, with patrons flying into the movies.”
Average daily spending (excluding petrol) in June rose by 1.9 per cent month-on-month, based on data until 28 June.
Average daily entertainment spending rose 14.2 per cent after a slight dip in May. Cinema spending was a particular standout with patrons queuing up for the movies.
Department store, furniture and electronics spending were especially strong. This helped bump up June spending numbers after a sluggish start to the month.
The start of school holidays saw a rise in travel-related purchases. This was underpinned by 10 per cent growth in accommodation in the final June weekend compared with the weekend before. Travel agent spending was also strong in June.
On the flip side, average daily spending on groceries fell 2.2 per cent.
Low consumer confidence and strong Google searches for “recession”, “inflation” and “bankruptcy” suggest there is a risk spending may drop in the coming months. This is not guaranteed as strong spending has continued to be seen this year despite falling consumer confidence.
It is likely consumers will cut back on discretionary items if they choose to limit spending. So ANZ Research - and the Reserve Bank of Australia - will be watching this aspect closely over coming weeks.
Madeline Dunk is an Economist and David Plank is Head of Australian Economics at ANZ
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
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