How Australian spending patterns are changing
There’s a rhythm to the way we choose to spend our money — and businesses are taking notice
2 min
October was the month for going out and partying, November saw spending on fashion spike while December shoppers will be turning to credit to have a happy Christmas.
That’s the pattern of spending by Australian consumers for the past three months according to recently released data.
Research from the Commonwealth Bank showed spending on ticketing services rose by 27 percent over October, with tickets to concerts by Oasis, Luke Combs, Metallica and even the F1 in Melbourne proving irresistible for many Australians looking to enjoy themselves.
In November, Black Friday sales — a retail event borrowed from the United States to bridge the day between Thanksgiving and the following Monday — have become a strong feature in Australia in recent years. While the sales events can begin at the start of the month and last for weeks rather than days, the Commonwealth Bank noted 8 of the 12 Household Spending Insights experienced an uptick over the month. This was led by women’s and men’s fashion, with shoppers hoping to take advantage of sales ahead of Christmas.
CBA Chief Economist Stephen Halmarick said in a year where cost of living pressures have been felt across Australian households, the possibility of securing a bargain moved Christmas spending forward.
“We’re seeing Black Friday and holiday spending shift earlier as retailers entice shoppers with early discounts on discretionary items,” Mr Halmarick said. “Collectively, sales for October and November 2024 were up 2 per cent compared to the same period last year.”
With Christmas Day a little over a week away, research by Roy Morgan, commissioned by the Australian Retailers Association showed more than half of Australian shoppers had begun their Christmas spend as early as October. The research also found that Australians are expected to spend $11.8 billion on presents this year, an increase of $1.6 billion on 2023.
Financial comparison service Finder research indicated more Australians will be leaning on credit to cover the shortfall in their budgets this year. The survey of 1009 respondents showed 26 percent regretted not saving more for Christmas, while a further 14 percent felt they had not saved enough.
In contrast, 34 percent revealed they had no need to set aside money for the holidays while another 26 percent had implemented a savings plan over the year to cover costs.
Sarah Megginson, personal finance expert Finder, said Australians struggling with Christmas expenses should avoid racking up debt on credit and instead focus on ways of trimming down costs.
“Many families have very little wiggle room in their budgets this festive season after a surge in living costs,” she said. “When you’re in this situation, planning and comparing to get the best deals and discounts is crucial.
“Avoid extending yourself and ending up with a credit card balance you’re struggling to pay off once the tree has been packed away.”
Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
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Borrowers cannot control the Reserve Bank, but they can control how exposed their household budget is to its next decision. The RBA meets on 29 September with inflation concerns still elevated and major-bank economists increasingly bringing forward their rate-rise calls. Fixed mortgage rates have also been moving, reducing the value of waiting for perfect certainty. …
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2 minAustralian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
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