The clothing and footwear industry has seen the strongest increase in household spending in August 2022, up 75.8% from last year, according to figures released by Australian Bureau of Statistics (ABS).
This is compared to other categories such as tourism and hotels, cafés and restaurants (up 64.8%) and transport (up 57.8%).
Overall, household spending continued to rise in August 2022, increasing by 29% compared to the same time last year.
ABS head of macroeconomic statistics Jacqui Vitas said August 2022 saw the 18th consecutive month of increases through the year in total household spending, with increases in all spending categories.
“There were strong increases following COVID-19 Delta lockdowns that reduced spending last year,” she said.
Spending categories that were not as impacted by lockdowns, such as Food (up 2.4%) and Alcoholic beverages and tobacco (up 0.2%) saw only minimal rises compared with August 2021.
Compared to pre-pandemic August 2019 estimates, total household spending was 15.8% higher in current price, under calendar adjusted terms.
Over this same period, clothing and footwear grew by 26.3%, slightly behind recreation and culture (up 31.1%) and ahead of furnishings and household equipment (up 20.1%).
Food also saw increased spending over this period, with a rise of 15.8%.
According to NRA interim CEO Lindsay Carroll, the data shows a significant increase in discretionary spending compared to August 2021.
“But we must remember that a significant portion of the country locked down at that time,” she noted.
“Nonetheless, this data does indicate that consumer confidence is back on the rise in the lead up to the Christmas season.”
“For retailers this means they will have shoppers keen to spend money, but that’s likely to be in a way that derives more value from their purchases as many Australians are still impacted by inflation and interest rate rises.
“Shoppers are looking to spend their money wisely, and retailers can take advantage of that through special promotions, loyalty programs and targeted digital channels.”
Regarding state results in the ABS household spending data, the year-on-year increase was also noted across all states and territories.
Compared to August 2021, the Australian Capital Territory saw the largest increase of 46.7%, followed by New South Wales (up 42.3%), and Victoria (up 33.5%) recording the highest increases in spending through the year.
All three jurisdictions experienced lockdowns due to the Delta wave this time last year.
Compared to pre-pandemic August 2019 estimates, all states showed rises in household spending with Queensland (up 21.5%), South Australia (up 19.6%) and the Australian Capital Territory (up 18.%) showing the strongest rises.