Westpac Banking's (ASX:WBC, NZE:WBC) card data suggest consumer spending is stabilizing after recent volatility, with steady quarterly growth, mixed sector and state trends, and continued softness expected in the June quarter, according to a Friday report.
The Westpac-DataX Card Tracker Index, which reflects millions of daily credit and debit card transactions processed by the bank, held steady at 137.3 for the week ending May 31, showing little change from mid-May and sitting slightly below its year-to-date average.
The index has stabilized over the past two weeks following a turbulent stretch in March, April, and early May driven by severe weather and holiday-related disruptions, the bank noted. Quarterly growth has steadied at 0.8% to 1%, in line with the past six months, while monthly figures remain volatile but are likely to stabilise soon.
Category data indicated improved momentum in discretionary services, persistent weakness in discretionary goods, and reduced spending on essentials, mainly due to lower fuel prices, the report said.
State data showed slow momentum in New South Wales and Queensland, steady activity in Victoria, and much stronger growth in South Australia and Western Australia, with Western Australia leading year-to-date, the report added.
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