A major shift in consumer behaviour is underway, with less spending on discretionary goods and services and more on essentials, according to a new report.
The latest Commonwealth Bank Consumer Insights Report is based on a survey of more than 5200 Australians in May and June. It found that around 27 per cent of people don’t have enough money, or have just enough, to meet household expenses.
Even households that describe that describe their situation as “comfortable” are changing their spending patterns. The report quantifies the shift in spend from discretionary items to essentials at an average of A$450 a month.
More comfortable households are adding to their savings.
CBA general manager business banking channels, Marcel Klassen, said: “While some people are under more pressure than others, a value-driven mindset is more pervasive.”
Consumers said they were cautious about making choices and doing more research before buying.
This shift to a value-driven mindset is making people more conscious of risks from scams and fraud. Data security and control are high on the list of considerations for consumers when they think about the businesses they will buy from.
Forty-six per cent of people said they now avoid online marketplaces because of concerns about scams.