Source: Commercial Bank of Australia (CBA)
Buying intentions for motor vehicles turn higher, while the impact of bushfires and coronavirus has already started to affect travel spending intentions, according to CBA HSI readings.
Tuesday, 18 February 2020: The latest monthly data from the Commonwealth Bank Household Spending Intentions (HSI) Series indicates a sustained and solid upward trend in home buying intentions is translating into higher motor vehicle spending intentions – the form of spending most sensitive to changes in consumer wealth, according to RBA research – for a second consecutive month.
CBA Chief Economist Michael Blythe said: “The monthly Commonwealth Bank Household Spending Intentions series, data to end January, shows that the wide gap between consumer spending intentions and home buying intentions persisted into early 2020. While the headline home buying intentions data eased back a little in January, the solid upward trend remains in place and there are now more signs this improvement may translate into stronger motor vehicle spending intentions – off a very low base.”
Mr Blythe said: “A positive wealth effect could spill over into other parts of consumer spending as well.”
Mr Blythe highlighted that trends in the remaining HSI measures are mixed but on the soft side overall, citing the Australian bushfires and coronavirus as having a potential negative impact.
“There are clear signs of a turn down in education spending intentions and, especially, travel spending intentions,” said Mr Blythe.