Consumers set to splurge before a Christmas cutback

ABC NEWS (Australia)

Shoppers are predicted to spend a record amount of money snapping up bargains during this weekend's Black Friday Cyber Monday sales. But as Christmas approaches many shoppers are expected to cut back on their holiday spending to cope with higher mortgage repayments and soaring rents.

Transcript

00:00 There seems to be a sale everywhere you look.

00:04 They're selling at a pretty good price, pretty competitive pricing.

00:08 But not everyone is buying into the hype.

00:10 I don't want to spend just to spend money, you know.

00:13 Black Friday isn't an Australian thing, why do we have it here?

00:16 Games like chess and backgammon.

00:18 For David Wall, it's a crucial time for his business.

00:21 It's definitely very competitive out there, discretionary spend is obviously down, but

00:26 they're still going to be spending for Christmas.

00:29 Australians are expected to spend a record $6.36 billion during the Black Friday/Cyber

00:34 Monday weekend, which is 3% higher than 2022.

00:39 And between November to Christmas, they're expected to fork out $67.1 billion, which

00:45 is similar to last year.

00:47 Shoppers are looking for deals, they're shopping on a budget, and they're looking for every

00:51 promotional offer that's possibly available.

00:53 But economists say things will get tougher in the coming months.

00:57 Around 40% of consumers are looking to spend less this year than they did last year.

01:02 That's a pretty penny-pinching approach to consumer spending in the Christmas period.

01:06 By lifting interest rates 13 times in the past year and a half, the Reserve Bank's plan

01:11 to bring inflation down is to inflict economic pain on us so that we spend less at the shops.

01:17 And the RBA governor says her task is not over yet, as inflation is becoming a homegrown

01:22 problem as opposed to one we've imported from overseas.

01:25 Hairdressers, dentists, dining out, sporting and other recreational activities, the prices

01:31 of all these services are rising strongly.

01:34 While some shoppers continue to splurge, the Reserve Bank governor is warning rate increases

01:39 may not be over.

01:41 [BLANK_AUDIO]

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