CommBank Household Spending Insights July 2024

The first look at household spending in July showed no change according to the CommBank Household Spending Insights series. The index was flat in seasonally adjusted terms, with annual growth sitting at 4.5% in original terms. Chief Economist, Stephen Halmarick and Belinda Allen, Senior Economist dive into the details in the latest podcast and note there was no noticeable impact from the start of income tax cuts on 1 July. A wide divergence in category performance remains in place with insurance and health top performers with hospitality and household goods at the bottom. The outlook for consumer spending remains constrained, with the tailwind from pent up savings due to be over by end of 2024. We expect interest rate cuts will be needed to see a meaningful lift in consumer spending.

 

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