Spending is down for some Australians, but one group continues to thrive
As cost of living pressures bite, retailers are taking bold steps to draw out cautious buyers
2 min
Spending continues to trail inflation as Australians head into the final quarter of the year, new data from the Commonwealth Bank has revealed.
The CommBank iQ Cost of Living Insights report showed the amount of money being spent on essentials halved in the past year, down to 1.7 percent, driven by a fall in petrol prices, down 6 percent, and lower spending on utilities, down 3 percent.
However, there is a marked difference across age groups, with Australians between 18 and 29 years cutting back on spending more than any other age group, down 2 percent over the past year. At the other end of the scale, Australians aged between 60 and 69 years increased spending over the same period, up 3.9 percent, while spending among those over 70 rose 7.7 percent.
Wade Tubman, CommBank iQ Head of Innovation and Analytics said it was further evidence of the widening generational gap when it comes to cost of living pressures.
“Lower petrol prices and government energy relief programs have eased the pressure on essential spending and July’s income tax cuts have increased take home pay for many Australians, however there continues to be a discrepancy between the spending power of older and younger Australians,” he said. “In fact, we’ve seen those all the way up to 40 years-old cut back on spending, highlighting the large swathe of the population feeling cost of living pressure.”
The report also showed that spending had risen in some areas, with value and convenience identified as key drivers. The ‘General Retail’ category saw a 5 percent increase in spending, with online marketplace sale increasing by 20 percent, food delivery up by 6 percent and streaming services experiencing a 13 percent rise.
The news comes as Australian retailers embrace the US-style Black Friday sales. Traditionally held the day after US Thanksgiving — November 29 this year — a number of leading retailers offering ‘early’ sales deals to draw in budget conscious shoppers ahead of the Christmas season. Amazon is among those who officially kicked off their sales period today.
Choice reported the Black Friday four-day period accounted for $8.7 billion in spending last year, based on NAB data, up from $7.1 billion in 2022. Data from the Australian Bureau of Statistics showed last year’s spend in that period overtook the December period, indicating Australians are bringing their Christmas spending forward.
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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. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
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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