The RBA’s aggressive interest rate hikes are beginning to impact spending, according to the latest CommBank Household Spending Intentions Index.
Tuesday, 11 October 2022
The CommBank Household Spending Intentions (HSI) Index fell 0.5 per cent down to 114.9 in September from 115.5 a month earlier, as higher interest rates begin to take a toll on household spending.
This was the first monthly decline in the HSI since the Reserve Bank of Australia (RBA) began hiking interest rates earlier this year. CBA economists expect to see a more pronounced impact on the HSI index – which combines Commonwealth Bank of Australia (CBA) payments data and Google Trends search information – in the months ahead.
September’s biggest declines came in the categories of Health and fitness, Home buying, Household services and Transport.
In a reversal from August, the Health and fitness category declined by a sharp 11.2 per cent in September, with fewer visits to doctors and dentists. Home buying was also down 4.4 per cent this month and 24.6 per cent for the year, with increased interest rates slowing demand for home loans.
Spending declines as rising interest rates impact households
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