The rise in consumer spending is a major factor behind the Reserve Bank of Australia’s monetary tightening, which has delivered three 25 bp rate hikes this year.
The latest Household Spending Insights (HSI) from CBA, which is based on de-identified payments (i.e., credit card, debit card, keypad transactions, ATM, BPAY, Buy Now Pay Later and direct debit transactions) and home lending data from approximately 7 million CBA customers, showed that spending growth slowed materially in June:
“The softening we are seeing in the CommBank HSI is broadly in line with our expectation that household spending will slow over the remainder of this year”, CBA’s Head of Australian Economics, Belinda Allen, said.
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