Australians aged between 18 to 39 are spending less on apparel in the recent September quarter, according to a new Cost of Living Insights report from Commonwealth Bank.
In collaboration with Quantium, the new stats show that 18-29 year-olds are spending 8 per cent less on fashion in the recent quarter year-on-year, which represents a drop in average spend per person by $9.
Meanwhile, 30-39 year-olds are spending 5 per cent less on fashion, down $7 on average spend.
In contrast, spending across general retail for 60-69 year-olds is up by 9 per cent, with average spend up $16, while over 70 are spending 13 per cent more on general retail, with average spend up by $14.
CommBank iQ head of innovation and analytics Wade Tubman said younger Australians are still making sacrifices as they face lingering cost pressures.
“Many are eating out less and buying fewer clothes while prioritising in-home entertainment like streaming,” Tubman said. “Higher spend on gyms and fitness suggests wellness is still a focus.”
The fall in average spend for younger generations coincides with a fall in the average monthly spend per capita for under 40s, with 18-29 year-olds reporting a 2.3 per cent per capita spend decline in essentials categories, alongside a 1.9 per cent fall in discretionary categories. Those aged 30-39 are also down in spend per capita, by 1.1 per cent in essential categories and 1 per cent in discretionary.
The younger of these two generations have an average monthly spend of $2,118, while 30-39 year-olds have an average spend of $2,795.
While those aged 70 or more have the second-lowest average spend, their spend per capita lift of 7.4 per cent is well ahead of current CPI of 2.8 per cent, as recorded by the Australian Bureau of Statistics.
“Younger Australians continue to reduce spending in response to cost of living pressures,” the report read. “Under 40s have again recorded negative overall spending growth, signalling a consumption drop.
“Spending growth among 60 to 69 year olds coupled with falling inflation suggests consumption is expanding for those over 60.”
Looking across all age cohorts, a recent quarterly increase of 1.5 per cent on total spending - driven by essentials and offset by discretionary - was predominantly driven by insurance, medical and pharmacy, and general retail. Petrol, utilities, and household goods recorded the largest decreases.
Online marketplaces drove general retail with a lift of 20 per cent.
“CommBank iQ’s analysis of de-identified transactions from approximately 7 million Australians shows that nationwide spending continues to decline in real terms,” the report read. “This suggests cost of living pressures remain even as falling inflation brings some price relief.
“However, a year-on-year easing in essential spending may be creating just enough room in people’s budgets for discretionary items to creep back in. Looking more closely reveals varied responses to ongoing cost of living changes across categories, age groups and locations.”
Regarding locations, the report noted that spending across regional Australia continues to outpace metro areas, with regional spending up 2.2 per cent compared to just 1.3 per cent in metro spaces.
“Increased spending on eating out, leisure, and travel have helped WA record the highest growth. QLD had similar drivers with energy and public transport subsidies also playing a role, while spending across NSW and VIC was more modest or flat.”