The CommBank Household Spending Insights (HSI) Index saw a 1.8 per cent uptick in November, a surge largely attributed to consumers capitalising on Black Friday and Cyber Monday sales. The Index, which is based on de-identified payments data from approximately 7 million CommBank customers, representing roughly 30 per cent of all Australian consumer transactions, reported increased spending in nine of its 12 underlying categories.

The most significant gain was observed in the household goods sector, which experienced a 9.3 per cent leap. Department stores, discount and variety stores, activewear outlets, and cosmetic and beauty stores also reported substantial increases in consumer spending. Other sectors witnessing gains included recreation (+3 per cent), communications and digital (+1.2 per cent), and household services (+1 per cent).

However, not all sectors enjoyed a spending boost. Transport spending fell by 3.6 per cent, largely due to a drop in petrol prices.

Despite the November spending spree, CBA Chief Economist Stephen Halmarick anticipates this trend to be short-lived, predicting a fall in December. He also forecasts a continued softening in consumer spending into 2024.

'What was once a novel period of sales for many Australians has now become entrenched behaviour. Expecting heavy discounts, consumers are opting to spend big in November. However, we anticipate consumers will pull back on spending in December,' said Mr Halmarick.

In contrast to the HSI Index, the CommBank Home Buying index declined by -4.6 per cent in November to 93.1, reflecting the impact of the early November rate hike from the Reserve Bank of Australia (RBA).

'Looking ahead, we expect to see continued softening in consumer spending into 2024,' Mr Halmarick added. 'However, home buying activity in the months ahead should be supported by strong demand from Australia’s growing population. This is expected to continue to put upward pressure on dwelling prices in Australia,' he concluded.