Consumers haven’t been spending their money on luxury items though. Transport, including fuel, taxis, tyres, parking, towing and freight as well as auto repairs have been the main driver of the surge in spending, rising 52 per cent since August 2021.
Travel spending also rose by a significant 77 per cent over the same period, with the largest increases including hotels, motels and resorts, travel agents, airlines and tourist attractions.
The index provides an in-depth gauge of Australian consumer spending and the November report showed that it rose 2.1 per cent during November to 110.3, driven by solid gains in spending on transport (+21.5 per cent), travel (+14.7 per cent), retail (+9.6 per cent) and household services (+9.4 per cent).
Retail spending rose 21 per cent since the low point in August, with the largest gains in department stores, clothing, furniture and household equipment, electronic stores, household appliances, jewellery and watches and pet shops.
Commonwealth Bank of Australia’s (CBA) chief economist, Stephen Halmarick, said the data pointed to a continued recovery in the economy following extended periods of lockdown faced by many Australians.
“The CommBank HSI Index has shown a continued and broad based recovery in consumer spending since the end of lockdowns. While we have seen sharp increases in categories like transport and travel, there is still plenty of room for further growth,” said Mr Halmarick.
“Australians have grown their savings to record levels during the pandemic. CBA estimates households have accumulated approximately $240 billion in excess savings, money that is ready to be spent as we head into Christmas and the signs are good for robust retail sales during this period.”
