Australian Card Activity Growth Softens Reflecting Lower Fuel Prices, Weakness in Non-Fuel Spending, Westpac Says

Australian card activity growth softened, reflecting a mixture of lower fuel prices and continued weakness in non-fuel spending, according to a Monday report by Westpac. The Westpac-DataX Card Tracker Index moved sideways through late May and most of June, declining sharply to 152.8 in the week that ended June 27, 2.3 points lower than a month ago. Quarterly growth momentum further slowed to 0.2% in the most recent week, down from the 0.5% a month ago. The implication is that some of the more recent softening in quarterly growth is due to a price-driven slowing in fuel spend. However, the monthly and weekly data suggest there has been a slight improvement in momentum since the start of June, likely reflecting some easing in budget pressures as fuel prices fell. The slight improvement in recent weeks centered on discretionary segments. The latest data suggest the June quarter is headed for a 0.2% quarter-over-quarter rise in nominal consumer-related card activity, pointing to a likely decline in real, inflation-adjusted terms.