Why it matters: Bank data is the most up-to-date window into consumer behaviour
Data from large banks show demand from shoppers is slowing quickly as rates rise
Official data from May showed sales rose by the highest amount since January
The country’s largest banks are warning their internal payment data shows consumer spending falling far quicker than official figures ahead of a possible rise in interest rates this week.
A survey of bank data suggests better than expected retail sales in May are already out of date, with Westpac noting customers had “put their wallets away” last month after the Reserve Bank increased the cash rate for the 12th time in 13 months, taking them to their highest level in 11 years.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com
