Bankwest’s latest Spend Trends analysis has highlighted the efforts of Western Australians in managing the current cost-of-living pressures, with further retreats on spending in April following the plummets of March.
Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights in community responses to economic conditions, with April 2024 data showing retreating volumes year-on-year, while values climb.
The results come after the previous Spend Trends report, which analysed March spending, showed significant declines of about 30 per cent year-on-year in the number of customers spending and transaction volumes.
The number of unique customers spending in April fell 3.4 per cent and the volume of transactions declined three per cent year-on-year, while average transaction values grew (+7%), indicating people were paying more for less.
Essential spending sectors made up three of the Top 5 sectors for transaction volume growth year-on-year (Education [6%], Pharmacies [5%], and Utilities [5%]), while discretionary sectors accounted for all major declines.
The trends suggested Western Australians have significantly reduced their spending in discretionary sectors, as household budgets narrow their focus on the goods and services they need amidst cost pressures.
Highlighting the trend was the fact that only two of the 25 sectors analysed increased year-on-year in the number of customers transacting, and even those were minimal increases (Airlines [2%], and Education [1%]).
The trend was contrasted by increases across several sectors year-on-year in the average value of transactions, including Utilities (+9%), Education (+6%), and Pharmacies (+6%).
However, a silver lining was prices at the bowser and checkout starting to ease, or at least stabilise, with year-on-year transaction values at Service Stations and Food Stores/Warehouses both declining by two per cent.
The data also suggested the cost-of-living pressures were impacting all generations equally, with no discerning differences in spending behaviours between Millennials, Gen X, and Baby Boomers.
Bankwest General Manager Products and Digital Services Peter Bouhlas said: “Bankwest’s Spend Trends report gives us an important insight into how Western Australians are adapting to economic conditions.
"We can see from the April data that cost-of-living pressures continue to impact the community, and people are increasingly focusing spending on the essentials, while pulling back on sectors that are more wants than needs.
"The spending of Western Australians has been reining in for consecutive months now and the stability of both the month-on-month and year-on-year data suggests many are likely finding little discretionary spend in the budget.
"It’s positive to see some stability – and even some easing – in the average value of transactions, which could hopefully indicate some relief on the horizon for people’s hip pockets.
"We know that the current economic conditions are putting significant pressures on some people and I encourage any customers experiencing financial difficulties to contact us, so we can support their individual circumstances."
