Western Australians have recorded a fifth-consecutive month of declining spending, with Bankwest’s Spend Trends report for May showing further pullbacks in discretionary sectors amidst ongoing cost-of-living pressures.
Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights in community responses to economic conditions, with May 2024 data showing Western Australians were having to sacrifice fun and games.
The number of customers spending (-2.4%) and the volume of transactions (-1%) across all 25 sectors analysed declined year-on-year for another month, with Recreation falling a significant 17 per cent in transaction volume.
The category contains retailers dealing in services such as events, cinemas, bowling, and indoor leisure centres, with the dramatic decline indicating Western Australians had less money to spend on leisure.
Year-on-year declines in the number of customers spending at Electric Appliance (-9%) retailers and Sporting/Toy Stores (-6%) also highlighted the trend of community pullback in discretionary sectors.
Only seven of the 25 sectors grew in the number of customers transacting year-on-year, but none of those were significant, with the leading category of Mail Orders only growing by three per cent.
The average value of transactions continued to outpace volumes, bucking the decline trend to grow four per cent year-on-year, indicating Western Australians continued to pay more for less when compared with last year.
The leading sectors for the increases for average transaction value included the essential services of Utilities (7%) and Pharmacies (6%), highlighting the squeeze on hip pockets as families manage their budgets.
Bankwest General Manager Products and Digital Services Peter Bouhlas said: “We can see from the May Spend Trends data that Western Australians are now being really selective in where they spend their money.
"A 17 per cent decline year-on-year for Recreation is a significant fall, and we can see across the board that the vast majority of sectors are experiencing customer and transaction volume declines.
"A positive in the data is in the majority of sectors showing a stabilisation – and, in some cases, a reduction – year-on-year in the average value of transactions, which indicates cost-of-living pressures might be softening.
"That is perhaps not a surprise when considering the customer and volume declines, with reduced demand and spending capacity naturally likely to have a flow-on effect for prices.
"We know the current economic environment is challenging for many people, and if there are any customers experiencing financial difficulties, I urge them to get in touch with us as soon as possible so we can support them."
