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More Australians spending on food, recreation

Nick Hall

Australians are spending more on food and recreation than ever before, according to the latest results from Commonwealth Bank’s Household Satisfaction Index.

Over 22 per cent of the average household’s $57,000 spend (excluding rent and mortgage payments) was chalked up to food purchases, representing the largest portion of spending share.

Recreational spending came in second, with 17.2 per cent household share, followed by transport with 10.9 per cent.

The report said that while it was difficult to assess what “essential” spending was, the Index revealed that food and recreational spending had increased over the year, at the expense of other sectors.

“Spending shares have remained relatively constant over the past few years. A slightly larger share of spending is going on food, transport and recreation. The offsetting reduction was in retail-related spending,” the report said.

While the results aren’t wholly positive for the retail sector, the Index indicates an encouraging rise in consumer confidence for the food sector, which encompasses a number of fast-food, casual dining, QSR and fine dining franchises.

Based on spending information received through credit card, EFTPOS, direct debit and BPAY transactions of more than 2.5 million Commonwealth Bank of Australia households, the Index provides a valuable snapshot into the everyday Australian household.

According to the Index, the average Australian household is comprised of 2.40 people and has a gross income of close to $90,000 per annum.

The annual Index is used by policy-makers, retailers and consumers to determine the overall status of the national economy, with Michael Blythe, CommBank chief economist suggesting the results help to shape economic concerns.

“Getting the household story right is critical to determining the direction of the Australian economy and understanding the risks and issues we face,” Blythe said.