Spending on clothing is increasing as restrictions ease, new data from ANZ indicates.
According to the bank, spending on clothing and beauty services are moving up in tandem and are now 35% and 38%, respectively, below 2019 spend.
Overall retail spending is elevated, up 15.3% year-on-year for the week to 15 May.
However, despite a burst of spending as restrictions ease, ANZ anticipates that long-term spending will remain subdued for a while.
"ANZ Research still expects spending to spike with each announcement of restriction easing but the longer term trend of retail spending is likely to be weak, reflecting reduced incomes and poorer financial stability for many households (though with some mitigation from JobKeeper or JobSeeker payments)."
Geographically, spending in Victoria is most subdued compared to the other states that have had restrictions eased.
"ANZ-observed retail spending in Victoria is faring far worse than other states reflecting very strict restrictions and the state’s exposure to tourism-related spending," ANZ said.
"Spending is growing the strongest in New South Wales and Western Australia.
"All states, except for Victoria, show retail spending growing by 10–20% year-on-year for the week to 15 May.
"Victoria’s very strict lockdown conditions are delaying an increase in spending," the bank said.
