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Aussie Consumer Spending Drops 17% In One Week

Consumer spending dropped 17 per cent last week, according to ANZ, although the lender says this isn’t cause for panic.

The drop in the week to July 24 was “still within the normal range”, according to analysts from the bank, and is far less than the 29 per cent drop seen this time last year, as the Delta variant swept the nation.

“The July dip in ANZ-observed spending was a little sharper than in previous years once we take higher inflation into account, though still within the ‘normal’ range,” ANZ analysts note.

“There’s no cause for alarm yet, but we will be watching consumer spending closely in coming weeks to identify an interest-rate led slowdown.

“Given our forecast of a further 200 basis point hike in the cash rate, we expect to see consumer spending growth slow down by year end.”



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