Sydneysiders have splashed $500m on local businesses in just one week out of lockdown

The economy has surged in NSW with Sydneysiders spending $500 million extra on haircuts, beauty services and in-store shopping in just the first week since restrictions were lifted.

Sydneysiders enjoy a drink at the Fortune of War Hotel in The Rocks on Freedom Day. Picture: NCA NewsWire / Jeremy Piper

The economy has surged in NSW with Sydneysiders spending $500m extra on haircuts, beauty services and in-store shopping in the first week since Covid-19 lockdown restrictions were lifted.

As spending and travel bookings jump people are rapidly moving off federal job support, with more 500,000 people in NSW moving off benefits since October 6 when the state hit the 70 per cent vaccination rate.

Josh Frydenberg said the reopening of greater Sydney demonstrated “the Australian economy is primed for take-off this summer” and that Victoria can look forward to results after lifting restrictions on Friday.

“Treasury analysis shows a spending spree across Sydney in the first week out of lockdown, with an increase of more than $500m spent across our largest city – a 25 per cent increase on the week prior,” the Treasurer told The Weekend Australian.

“This is what happens when restrictions are eased, emer­gency support comes to an end and economic activity recovers. This is what Victoria can look forward to with its reopening having now begun.

“With business and con­sumer confidence increasing sharply in recent weeks and job ads 21 per cent higher than they were at the start of the pandemic, the jobs are coming back.

“The recovery should also be sustained, with an additional $330bn sitting on the balance sheets of households and businesses that wasn’t there before the pandemic.”

Federal Treasury analysis up to Friday showed spending in Sydney had jumped by 25 per cent in one week, with the biggest spending on beauty and hair care followed by “recreation” as people tested their freedoms as well as going to the shops to buy directly over the counter.

The analysis also showed a growth in jobs, with the number of people on Covid-19 disaster payments in NSW halving in the last two weeks, with half a million people moving off support and back to work.

In the ACT, there has been a similar result since the lockdown was lifted, with 25,000 people in Canberra moving off the disaster support payments since the vaccination rate hit 70 per cent.

The economic surge in NSW is expected to continue, with ­National Skills Commission figures showing a national rise in job vacancies of 4.9 per cent and a 16.7 per cent rise in Sydney and NSW.

Ahead of the lifting of restrictions in NSW and the ACT, the Treasury identified a rise in household cash savings of $185bn and lift in business cash holdings of $145bn since the end of 2019.

During that time the commonwealth provided $11.8bn in job support to the states and ­territories.