Australian household spending: AC/DC, Oasis rock November as entertainment spending surge

Australian household spending lifted in November as consumers reached for their wallets at legendary rock band AC/DC’s concerts and the Ashes series opener in Perth.

Commonwealth Bank’s latest household spending insights — based on de-identified payments from about seven million of its customers — lifted 0.5 per cent in November. It is up 5.5 per cent for the year.

The recreation category grew 1.6 per cent to lead the charge in November, with households loosening their purse strings at the Ashes, the AC/DC, Oasis and Metallica concerts, as well as the release of the Wicked: For Good movie.

“Households prioritised experiences in November and the month’s busy calendar of sport and entertainment provided a strong boost to spending,” CBA head of Australian economics Belinda Allen said.

Black Friday sales still contributed to spending growth in November, with electronic stores, clothing stores and furniture stores all recording significant spending lifts during the month.

But CBA said these categories trailed recreation, marking a shift from previous years when discount events dominated November.

“Australians appeared spread their spending more evenly across categories and months this year, rather than concentrating purchases around major sales periods,” it said.

Ms Allen said patterns of consumer spending have evolved over recent years as sales shift to as early as October.

“We’re seeing less lumpiness in spending as a result,” she said.

Meanwhile, utilities recorded a 2.1 per cent fall as the last of the energy rebate payments impacted the category over November. Food and beverage goods slipped 0.2 per cent.

Ms Allen said the risk of potential interest rate hikes next year gained traction over the past month and was now “elevated post the hawkish December Reserve Bank meeting”.

“Robust spending will be part of that conversation,” she said.