Coronavirus lockdown in Victoria sees consumer spending quickly slump – ABC News

Victorians have slashed spending again as stage-three COVID restrictions have been reimposed in parts of the state.

• Victorian card spending dropped last week to be below levels seen last year, having been above the previous week
• All states and territories recorded a decline in card spending from the previous week, except the NT
• Victorian spending falls were largest in education, transport, recreation and clothing

The health crisis in Victoria may be dampening household sentiment in the rest of Australia too, because household spending growth has also eased in every other jurisdiction in the last week, except the Northern Territory.
Internal data from the Commonwealth Bank shows household card spending turned sharply negative in Victoria last week.
The drop-off in spending occurred in clothing, personal care, recreation and entertainment, transport and education some of the categories of consumer spending most affected by the restrictions and lockdowns.
Importantly, the data concerns purchases from last week, so it only captures the first two days of the reimposed stage-three lockdowns.
Analysts warn that more negative data can be expected over the coming weeks.
“Spending momentum in Victoria has turned negative as the number of COVID-19 cases lifts sharply and restrictions are reimposed,” Commonwealth Bank senior economist Kristina Clifton wrote in a note to clients on Tuesday.
“Many businesses providing beauty and personal care services are required to close again in this state.
“Many entertainment venues have been forced to close again as stage-three restrictions are reimposed. No doubt tighter restrictions and lockdowns are having an impact on transport spend.
“Spending on education has turned sharply lower in Victoria. The decision to delay the start of term three may mean that some households have delayed paying fees.”
The effect is not limited to Victoria, where tough social distancing restrictions have been reimposed, with the outbreak causing consumers in parts of the country that remain open to pull back their spending.
“Spending growth also eased in all other jurisdictions over the week with the exception of the NT,” Ms Clifton observed.
“Rising coronavirus cases in Victoria may be dampening sentiment in the rest of the country.”
Victorian premier Daniel Andrews reintroduced stay-at-home orders for metropolitan Melbourne at 11:59pm on Wednesday last week to try to prevent localised COVID outbreaks from spreading.
He said the restrictions will last for six weeks, or as long as it takes to contain the outbreaks.
Other states have closed their borders to Victoria to try to prevent virus spreading out across the country.

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