Pandemic Habits - Switching spend from groceries to eating out

Chris Pash
By Chris Pash | 20 May 2021
 
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Australians have started spending on eating out again, according to analysis of two sets of data.

Analysts at Macquarie say the latest ANZ credit card and ABS data show a shift away from grocery spending to dining out as the economy reopens.

“Shopping trends are still ahead of pre-pandemic levels, with less of a focus on electronics as social categories such as clothing improve,” they write in a note to clients.

The ANZ credit-card spending data to May 3 shows grocery sales have slowed post-COVID but still about 18% above April 20219 levels.

“Evidently, there has been a shift to eating out at cafes and restaurants, bolstered by easing restrictions and NSW Dine & Discover vouchers,” say the analysts.

ANZ data suggest people are eating out more, up about 16% in April compared to April 2021, with the latest ABS March data also showing a strong recovery but not yet reflecting the positive impact of NSW Dine & Discover vouchers.

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Macquarie says the mix of shopping has also changed, with less of a focus on electronics and more on clothing.

ANZ credit card data shows spending on electronics slowed from November’s Black Friday highs, closer to levels at the start of the pandemic.

However, this is still well ahead of 2018-19 levels with April about 36% above the same month in 2019.

Consumer confidence is also showing buy signals.

The weekly ANZ-Roy Morgan consumer confidence rating rose by 0.8 to 112.5 (long-run average since 1990 is 112.6).

Last week the measure of whether it was a “good time to buy a major household item” jumped to a 15-month high of 22.5 points.

Analysts at CommSec say consumer sentiment, as measured by ANZ and Roy Morgan, has been volatile in recent weeks.

“The sentiment gauge tumbled 1% in early May on concerns about a virus flare up in Sydney.

“But consumers were more chipper last week with the index up 0.8% following the release of the Federal Budget. ANZ economists also reported that confidence in Sydney lifted 5.4% as no new community cases of COVID-19 were reported with government restrictions easing.

“Typically, consumer confidence and retail spending intentions lift as mobility increases. And a few federal budget ‘sweeteners’ also likely boosted optimism.”

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