Australia's economic landscape is in a state of flux. Data from Finder's Consumer Sentiment Tracker (CST), the Reserve Bank of Australia (RBA), the Australian Bureau of Statistics (ABS), and CoreLogic reveals rising home loans, climbing property prices, and increasing credit card spending. To navigate these dynamic trends, it's essential to stay informed. Our latest economic update provides a deep dive into these key indicators, analyzing their causes and exploring the potential ripple effects on your personal finances.
Highlights
- In November 2024, credit card purchases totaled $36.6 billion, while debit card purchases hit a record high of $53.19 billion, both showing increases compared to the previous month.
- Total household spending in Australia amounted to $74.5 billion, with $40.8 billion allocated to goods and $33.7 billion to services.
- Australia's unemployment rate rose to 4% in December, up from 3.9% in November
- Median house prices have risen by an average of 9.1%, while median unit prices have increased by an average of 5.3%..
Credit Card and Debit Card Usage Trends
In October 2024, the total value of credit card purchases in Australia reached a total value of $36.6 billion, marking a 1.46% increase from the previous month and a 5.76% rise compared to the same period last year. There were 316 million transactions, reflecting a slight monthly decrease of 1.21% but a 4.33% increase year-on-year. The average purchase value per card stood at $3,018.38.
Debit card purchases reached a record high of $53.19 billion, showing a 0.39% increase from the previous month and a 5.21% rise compared to the same time last year. On average, each debit card was used for purchases amounting to $1,215.
Monthly Household spending in Australia
According to ABS, total household spending in Australia reached $74.5 billion in October 2024, reflecting a 2.4% increase from the previous year. This included $40.8 billion spent on goods and $33.7 billion on services, with the average household spending amounting to $7,453.
Australians spend an average of $1,170 per month on food, $330 on alcohol and tobacco, and $427 on clothing and footwear. Monthly expenses for furnishing and household equipment average $533, while health-related costs are around $863. Transportation is the highest expense at $1,244 per month, followed closely by recreation and culture at $1,269. Spending on hotels, cafes, and restaurants averages $929 per month, with $688 allocated to miscellaneous goods and services.
Unemployment Rate increased to 4%
In December 2024, Australia’s unemployment rate rose to 4%, up from 3.9% in November. The total number of employed people was 14,584,416. Full-time employment decreased by 23,711, bringing the total to 10,037,597, while part-time jobs increased by 80,037 to 4,546,819. The underemployment rate saw a slight decline, dropping to 6% from 6.1% the previous month.
House and Unit Prices
Over the past year, median house prices have risen by an average of 9.1%. Meanwhile, median unit prices have increased by an average of 5.3%.
For those considering purchasing a property, here's a snapshot of the average prices of houses and units across different capital cities, along with the corresponding 20% deposit, monthly repayment based on 80% of the average price, and the required household income to stay below mortgage stress level (30%).
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