Australians cut back as daily spending drops 5.7% in May 2023

Sydney, Australia – Spending fell in May 2023, with the average daily spending for Australians down 5.7% from $58.84 to $55.49, according to the Beforepay Cost of Living Index. Daily spending was down month-on-month across all key categories, with the largest decreases seen in durable shopping and fitness and health. Daily spending also decreased year-on-year, down 3.3% from $57.36 in May 2022.

Discretionary spend categories saw the largest decreases month-on-month, led by the 10.3% drop in durable shopping expenses from $6.69 in April to $6.01 in May.

This was followed by an 8.6% decrease in spending on fitness and health, down from $2.44 in April to $2.23 in May, and a 6.8% decrease in entertainment and leisure, dropping from $3.10 to $2.89.

Necessities saw the least month-on-month decrease in spending. Australians spent 4.1% less on groceries, with the average daily spend down from $15.24 in April to $14.62 in May. Similarly, food and drink was down 4.4% from $10.52 in April to $10.06 in May.

While utilities dropped only 3.4% month-on-month from $5.96 in April to $5.76 in May, it saw the highest year-on-year increase, up 11.8% from $5.15 in May 2022.

Petrol and auto expenses also saw a 6.4% drop from $7.85 in April to $7.35 in May.

“As Australians begin to experience the impact of inflationary pressures and interest rate rises on their spending and savings, budgeting is becoming more important for consumers to effectively and confidently manage their expenses,” says Geoff Chang, Lead Machine Learning Engineer at Beforepay.

“Whether it’s the budgeting tool in the Beforepay app or resources like moneysmart.gov.au and the National Debt Helpline, we encourage Australians to find the tools and support that will help them manage their finances.”

The Beforepay Cost of Living Index includes various household expenses such as utilities, groceries, food and drink, shopping, petrol, and fitness and health, providing a comprehensive overview of consumer spending, and is drawn from the spending data of more than 400,000 Australians.

About the Beforepay Cost of Living Index

The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories. The average income of customers in the sample is approximately $58,960 (counting only the main source of income) and the average age is 33, with a broadly representative geographic and gender breakdown. The data may vary depending on the main bank account linked with Beforepay. To the maximum extent permitted by law, Beforepay and its related bodies corporate, make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this article and do not accept any liability for any loss whatsoever arising from the use of this article or its contents or otherwise arising in connection with it.

For more information about the Cost of Living Index visit:

https://blog.beforepay.com.au/the-beforepay-cost-of-living-index-may-2023

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