A growing number of mortgage holders are falling behind on repayments. Many are being forced to cut back on shopping and eating out to keep up with other costs.
Aussies Struggle: The Challenge Of Cutting Back
In recent times, Australians have encountered difficulties in reducing their expenditures, as evidenced by the decline in online purchases. Across the nation, online spending in Australia has decreased by 1.82%, equivalent to a reduction of $587 per adult in the past year. This decline has been observed across all sectors of the digital economy.
Although there have been some positive trends in specific regions, such as Victoria, Queensland, Tasmania, and Western Australia, which experienced growth in online spending, other areas, like South Australia, did not fare as well. Tasmania witnessed the most substantial growth, with a remarkable 12.8% increase in digital revenue turnover. Conversely, South Australia faced the worst performance, with online spending shrinking by 16.77%.
Overall, while household spending in Australia has increased by 3.3% compared to the previous year, discretionary spending has decreased by 0.6% as Australians prioritize essential expenses. The rising cost of living remains a concern for households, prompting a reduction in spending on non-essential items.
Key Takeaways
- Australians spent about $600 less on online purchases compared to last year, indicating a decrease in overall online spending.
- Tasmania experienced the highest growth in online spending, with a 12.8% increase in digital revenue turnover.
- South Australia had the worst performance, with online spending shrinking by 16.77%.
- Australians are cutting back on discretionary spending and reducing spending on non-essentials.
Overall Online Spending Trends
The pre-existing knowledge indicates that Australians have experienced a decline in overall online spending, with a drop of $587 per adult across the 12 months up to Q2 2023, representing a 1.82% nationwide decrease worth about $523.3m.
This decline in online spending was observed across all industries in the digital economy for both 2023 quarters.
However, there were some variations in online spending trends among different states. Victoria, Queensland, Tasmania, and Western Australia saw growth in online spending, with Tasmania experiencing the highest growth of 12.8%.
On the other hand, South Australia had the worst performance, with online spending shrinking by 16.77%. New South Wales, the largest state, also experienced a significant downturn in online spending.
These findings suggest that Australians are holding back on online purchases, possibly due to the cost of living crisis and concerns about the economy.
Online Spending by State
Victoria, Queensland, Tasmania, and Western Australia experienced growth in online spending, with Tasmania showing the highest increase in digital revenue turnover.
Tasmania’s online spending saw a significant rise of 12.8% compared to the previous year. However, this growth was a decline of 4.89% in the previous quarter.
On the other hand, South Australia witnessed a sharp decline in online spending, shrinking by 16.77%. New South Wales, the largest state in Australia, also experienced a downturn in online spending, which is consistent with quarter-by-quarter comparisons in other states.
These trends suggest that while some states are experiencing growth in online spending, others are facing significant challenges.
The variations in online spending by state reflect the complex and diverse economic landscape across Australia.
Bright Spots in Australia’s Digital Economy
Bright spots in Australia’s digital economy include sectors such as technology, education, and travel, which have shown positive growth and potential for development.
The technology sector has been thriving, with advancements in software, hardware, and digital services. This has led to increased demand for skilled professionals and innovative solutions.
The education sector has also experienced growth, as online learning platforms and digital resources have become more widely adopted.
The travel sector has benefited from the shift towards online bookings and the promotion of domestic tourism. Destinations like Queensland, Tasmania, and Western Australia have seen increased online travel revenue.
These bright spots offer opportunities for job creation, economic growth, and innovation in Australia’s digital economy. However, it is important to note that these positive trends are contrasted by declines in online spending in other sectors and regions.
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