Spending switch turns from food to DIY and throw cushions, CBA data reveals

Australians appear to have panic bought enough food and alcohol and are now making the home comfy, data shows.

Spending on household items over the week to April 3 was up by 20 per cent on a year before, even after it fell 7 per cent on a week-on-week basis.

As the pace of new coronavirus infections slows, so Australian shoppers might have passed peak hoarding of grocery items and alcohol, CBA credit and debit card spending data show.

Instead, with strict social isolation measures now in place, the data showed a move toward furnishing and fixing the family home.

“Some of the spending patterns that emerged early on in the COVID-19 crisis period are now reversing,” CBA senior economist Kristina Clifton said.

Consumers over the week to Friday spent 13 per cent less than the week before, and 15 per cent below the same week in 2019 – showing the frenzy of buying that anticipated lockdown measures, announced by Scott Morrison on March 22, has abated and even reversed.

Spending on food was down 12 per cent over the most recent week, but still up 4 per cent versus the year before, while spending on alcohol dropped by a third on a week-on-week basis, and is also lower than a year ago, the CBA figures showed.

“Like the situation with food, consumers may feel like they have enough alcohol in reserve,” particularly as the opportunities to socialise with others, even at home, have disappeared, Ms Clifton said.

With many Australians stuck at home, during the workday and weekend, we continue to spend big on fixing and furnishing the house, the data showed.

Spending on household items over the week to April 3 was up by 20 per cent on a year before, even after it fell 7 per cent on a week-on-week basis.

The data shows no easing of the pain of some other retailers. The categories of personal care and clothing and footwear posted heavy falls over the past three weeks, now down 55 per cent and 60 per cent, respectively, against a year earlier.

Spending on medical and health services and products dropped 27 per cent over the past week, while transport dropped 17 per cent and households spent 10 per cent less on recreation.

“Spending on these categories is also down strongly over the year,” Ms Clifton said.

Other categories of spending have been less affected by COVID-19, the card data showed, including education, fuel and power, communications and household services.

CBA economists expect total spending in the June quarter will be 11 per cent lower than in the March quarter.