Bankwest’s Spend Trends analysis has highlighted the significant impact cost-of-living pressures are having on Western Australians, with year-on-year spending figures plummeting in the face of rising costs in March 2024.
The Spend Trends report tracks WA customer credit and debit activity to identify insights in community responses to economic conditions, with March 2024 data showing significantly lower spending activity than in March 2023.
The number of unique customers spending last month across the 25 tracked industries was down 29 per cent on the same time in 2023, with the volume of transactions unsurprisingly replicating that decline.
The significant year-on-year decline is in marked contrast to a spending surge at the start of 2023, as travel spending normalised post-pandemic, with airlines operating more flights, and with a lower cash rate at the time.
However, the declines were across the board, with Repair Shops (-50%), Education (-35%), and Sporting/Toy Stores (-34%) leading the drop-off in the number of customers spending, with all 25 industries declining by double digits.
The year-on-year comparison in the average value of transactions remained relatively stable, indicating Western Australians were paying about the same for goods and services in March 2024 as they did in March 2023.
The month-on-month figures were far more promising for businesses, with the community emerging from its post-Christmas spending slumber to surge 45 per cent in the number of customers transacting compared to February.
Hardware (+56%), Education (+54%), and Auto Rental (+54%) all increased, with the lowest growth in customers transacting being Electric Appliance retailers, which still grew significantly at 30 per cent.
The month-on-month growth in the leading two sectors – Hardware and Education – can likely be attributed to seasonal trends, with holiday DIY and back-to-school spending, respectively, potentially driving transactions.
Bankwest General Manager Products and Digital Services Peter Bouhlas said: “Bankwest’s Spend Trends helps us understand the economic impacts on Western Australians, and we can see many are currently feeling the squeeze.
“Such a significant decline year-on-year indicates that Western Australians have become very selective with where and how they spend their money, and the month-on-month data aligns with that.
“We can see from the increases from February to March this year that Western Australians are still willing to spend, and the growth could indicate an increase in financial confidence as they adapt to the conditions.
“However, it’s clear when comparing the 2024 and 2023 data that there are far fewer transactions being conducted overall, and we know that many people are finding the current cost-of-living pressures challenging.
“Bankwest is committed to being there for its customers, and I urge anyone who is facing – or is concerned they could face – financial difficulties to contact us so we can support their individual circumstances."
