Footy finals kick spending goals in otherwise low subdued month

Sports fans dug deep to attend footy finals last month in an otherwise cautious month of spending.

Despite tax cuts cushioning household incomes, the monthly spending indicator compiled by Commonwealth Bank recorded a 0.7 per cent decline in September.

Tuesday’s result followed a robust 1.8 per cent gain in August, buoyed by Father’s Day gift-shopping and trips to the pub.

CBA chief economist Stephen Halmarick said a weaker September was expected after consumers splashed out on their dads in the month prior.

“Although we saw a rise in recreation spending associated with the AFL and NRL Grand Finals, consumer spending overall remains subdued, now growing at just over two per cent for the year,” he said.

The 1.5 per cent gain in recreation was the only rise in a discretionary spending category over the month.

Mr Halmarick said tax relief, which kicked in at the start of the financial year, was going towards staples and paying down debt and was not being spent on nice to haves.

“This trend is reflected in the year to September, supporting our view that softer economic data, coupled with a further deceleration in inflation will see the RBA cut interest rates in December 2024,” he said.