Following months of restrictions across Australia, the population is spending more money on entertainment and travel, a report said.
The month of October saw 6.6 percent more spending than the previous month, according to the Commonwealth Bank of Australia (CBA).
The CommBank Household Spending Intention (HSI) indicator discovered that travel spending jumped 52 percent, while transportation went up by 20 percent in October compared to September.
The report noted: “The increase was driven by a more positive outlook on the future, with travel agents, airlines, cruise lines, and motorhome and RV rentals seeing a boost in spending intentions.”
Andre Hinchliff, CBA’s group executive of institutional banking and markets, said that after many months of lockdown, there’s a huge desire to go out and explore.
“Many people are searching for getaways or going for a quick break after so many months being cooped up at home, and with Christmas just around the corner, some are also already planning that December vacation,” he said.
“As people get back to being out and about, they’re driving more, they’re keeping that car clean, and they’re also back to using transportation services like taxis and rideshare services.”
A recent report by Citi also showed that Australians are eager to spend a lot during the festive season. 45 percent of respondents are planning to spend over AU$300 on gifts for their loved ones as well as AU$100-$200 on presents for themselves. The report found that the top three categories for spending include liquor, groceries, and gifts.
“We have also seen an uptick in personal spending, with consumers wanting to treat themselves after this tumultuous period. Twenty-five percent of Aussies are telling us they plan to spend more than they did last year,” Choong Yu Lum, head of cards and loans at Citi.
NSW spending was up 23 percent during the last week of October compared to the week preceding it in 2019. This was despite eating and drinking out as well as transportation leading the way. The growth in Victoria‘s spending increased 1.2 percentage points more than the week before, which amounts to a 10-percent boost over the same week in 2019.