CommBank Report: Aussies Keen To Spend On Travel

CommBank has today released its Household Spending Intentions (HSI) Index for November 2021, signifying its highest spending level since December 2019 and significant post-pandemic recovery, particularly in travel.

The index – which provides an in-depth gauge of Australian consumer spending – rose 2.1 per cent during November to 110.3, driven by solid gains in spending on transport, travel, retail, and household services.

Travel spending rose by a significant 77 per cent since the August 2021 Delta lockdown nadir, with the largest increases being hotels, motels and resorts, travel agents, airlines and tourist attractions.

The industry also saw the second largest monthly increase, up 14.7 per cent in November, and 25 per cent compared to this time last year.

However, current travel spending intentions are still 30 per cent lower than the November 2019 pre-pandemic levels.

Transport spending also rose 52 per cent over the same period, with fuel stations, taxis, tyre stores, car parking, auto repairs, towing and freight & trucking services having led the surge.

Retail spending rose 21 per cent, with the largest gains in department stores, clothing, furniture and household equipment, electronic stores, household appliances, jewellery and watches and pet shops.

In more good news, end-of-year and silly season celebrations have driven more spending on cosmetics, tailors and alterations, and clothing rentals.

Commonwealth Bank of Australia’s chief economist, Stephen Halmarick (main photo), said the data pointed to a continued recovery in the economy following extended periods of lockdown faced by many Australians.

“The CommBank HSI Index has shown a continued and broad based recovery in consumer spending since the end of lockdowns. While we have seen sharp increases in categories like transport and travel, there is still plenty of room for further growth.

“Australians have grown their savings to record levels during the pandemic. CBA estimates households have accumulated approximately $240 billion in excess savings, money that is ready to be spent as we head into Christmas and the signs are good for robust retail sales during this period.”

The CommBank HSI Index combines CBA payments data analysis, loan application information and Google Trends publicly available search activity to provide monthly insights into current and future spending trends.

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