Card spending remains low in Victoria amid stage 4 lockdowns

author-avatar By on August 25, 2020
Card spending remains low in Victoria amid stage 4 lockdowns

Melbourne. Photo by Shawn Ang on Unsplash

Overall household credit and debit card spending might be up 5% higher than a year ago, but it's a very different story in Victoria, new data shows.

The latest Commonwealth Bank credit and debit card data for the week to 21 August shows nationwide card spending is little changed over the week and still sits 5% higher compared to 12 months ago, with states like Western Australia, Queensland and Tasmania actually running above pre-COVID levels in terms of spending. 

But it's a very different story in Victoria, where, thanks to stage four restrictions, Victorian spending is still down 10% compared to a year ago, a number that would be much worse if not for a significant lift in education spending. 

CBA2.1

Source: CBA

In-store spending in Victoria is particularly weak, down almost 40% from a year ago. 

"The divergence between state in-store spending is material. State success in controlling COVID-19 will likely continue to dictate in-store spending patterns," CBA economist Kristina Clifton said in the report. 

"In-store spending is strongest for WA, QLD and Tas, But Vic in-store spending remains extremely weak."

CBA1.1

Source: CBA

"In Victoria, the various COVID-19 restrictions have seen spending at pubs, bars and nightclubs remain very weak," the report said.

"This also looks to have partially spilled-over into NSW. Meanwhile, in WA drinking-out has thrived over the past five weeks with spending up around 40% on year-ago levels.

"National in-store spending has been weak with NSW and Vic placing a lid on total spending growth over recent weeks."

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider
Total
interest
rate p.a.
Intro
interest
rate p.a.
Intro
term
Base
interest
rate p.a.
 
Online Saver
1.55% 1.20% 4 months 0.35% Go to site
2.00% 1.45% 4 months 0.55% More details
1.90% 1.10% 4 months 0.80% More details
1.50% 1.35% 4 months 0.15% More details
1.50% 0.15% 4 months 0.35% More details

*Data accurate as at 01 October 2020. Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed.

Spending and confidence improving slightly 

Despite spending in Victoria being down 10% on 12 months ago, there may be some green shoots appearing. 

The prior week's CBA card spending update - for the week ending 14 August 2020 - showed that nationwide spending was 4% higher over the year and card spending in Victoria was down by 15%. 

Today's weekly ANZ-Roy Morgan Consumer Confidence shows consumer confidence moved up 4.1 points to 92.7 on 22 August - the highest level it's reached since late June. 

According to the report, confidence rose as new cases of COVID-19 in Victoria plunged to their lowest level since early July.

ANZ's Head of Australian Economics David Plank said this was an encouraging development. 

"The substantial decline in active cases in Melbourne and continued low numbers in Sydney have raised hopes that the pandemic can be contained without a broadening of lockdowns beyond those already in place," Mr Plank said. 

"Confidence was up firmly across all states except Victoria and NSW, where the gains were more subdued. Sentiment is now above neutral in Perth and Adelaide."


Latest Articles

author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A