Published April 13 2021
Snap lockdowns seen across two Australian states in the first quarter of calendar 2021 had a significant impact on consumer spending, according to exclusive ANZ data, in a sign of the ongoing economic risks from the pandemic even as the world moves into recovery mode.
ANZ data show an interesting interplay between supermarket, fast-food and restaurant spending across Queensland in the immediate the wake of the March 29 lockdown, which came after the city recorded a spike in COVID-19 cases.
While fast-food purchasing remained relatively flat, restaurant spend slumped 16 per cent as venues across Brisbane closed their doors. Additionally, supermarket spending spiked by 40 per cent - presumably as more ate at home and stockpiled amid pandemic-related uncertainty.
Such indicators were not unexpected, with a similar impact in spending seen in broader Victorian data after a comparable lockdown earlier in the first quarter. Consumer spending dropped suddenly and significantly in that state before recovering to trend.
Exclusive ANZ data show Victoria’s snap lockdown in mid-February – put in place after a spike of COVID-19 cases in state capital Melbourne – led to an 18.2 per cent fall in consumer spending, compared to the same period in 2020.
The drop was particularly pronounced in clothing spending, which fell an astonishing 58.6 per cent, year on year, before it too returned to trend.
ANZ’s deaggregated data can provide valuable insights for businesses in the retail sector and elsewhere as the recovery from COVID-19 continues, Anurag Soin, Director, Data Science, ANZ Institutional, said.
“At ANZ, we work closely with our customers to share industry-leading insights based on our work with data,” he said. “This information can be critical in helping them prepare for and respond to the ongoing risks of the pandemic.”
“We’ll continue to use our insights to assist our customers as the COVID-19 pandemic continues – and beyond.”
This publication is published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia. This publication is intended as thought-leadership material. It is not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in this publication is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in this publication constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in this publication is based on information available at the time of publication. While this publication has been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of this publication or the use of information contained in this publication. ANZ does not provide any financial, investment, legal or taxation advice in connection with this publication.