-
Published September 8 2021
Retail spending in Melbourne has continued to decline amid ongoing movement restrictions, but a strong post-lockdown redound is still likely, according to ANZ Senior Economist Adelaide Timbrell.
ANZ data show average weekly spending across inner Melbourne fell 58 per cent in the week to September 3, compared to the last full week before the recent Melbourne lockdowns - the seven days to May 22.
The rest of Melbourne (outside the City of Melbourne municipality) fell just 34 per cent in the same period.
Timbrell said city spending had been impacted by orders preventing workers from commuting to the central-business district – a factor which may not entirely subside when lockdowns are lifted.
“As work-from-home continues past lockdowns, we expect to see more economic activity and spending in suburbs and regional areas, and less in the CBD compared with pre-pandemic conditions,” she said.
You can see more in the visualisation below.
{video}
Despite the decline, Timbrell said ongoing fiscal support, a resilient labour market and improving consumer confidence should combine toward a bounce in spending once lockdowns are lifted.
“We expect weakness in spending across Australia’s east coast to continue until lockdowns ease, but once retail reopens in Melbourne and New South Wales, a strong rebound is likely,” she said.
In regional Victoria, ANZ data show average weekly spending slipped 31 per cent compared to pre-lockdown times, but recently announced relaxations would lead to a solid rebound, according to Timbrell.
However, “a full recovery of spending in regional Victoria – particularly travel-related spending – relies on travel between Melbourne and regional Victoria,” she said.
Recent lockdowns across Australia has seen major declines in inner-city spending, including in Sydney and Adelaide. Spending in Melbourne had been slowly returning before the fifth lockdown put an end to that recovery.
ANZ works closely with customers to ensure they have access to the data their business needs to help manage the uncertainties of the pandemic.
-
Related articles
-
Government-driven tariffs are likely here to stay.
2024-08-28 00:00 -
What impact would US Presidential candidate's proposed policies have on the economies of Asia?
2024-08-06 00:00 -
Australia’s cotton market is well-positioned to emerge from a period of global economic challenges into a position of strength.
2024-08-22 00:00
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.