- The HSI provides a forward-looking view of what Australian consumers intend to buy
- Using CommBank and Google search data, the index gives a peek into future demand
- Home buying intention has shot up +70% compared to this time last year
Increases in Australian consumers’ spending intentions regarding home buying, education and health and fitness reflect the continuing economic recovery, according to Google search intent and CommBank data (CBA).
The bank’s Household Spending Intentions (HSI) report for May showed that consumers were opening their wallets, and looking forward to more and more buying activity.
The HSI looks at what consumers want to do, based on their search activity on Google as well as consumer purchasing data as recorded by CommBank. The two together provide a forward view of what consumers would like to buy, not only what they have bought, or are buying.
Home buying intent lifts off
“The high reading is no surprise given the strength in the housing market,” said Belinda Allen, senior economist at CBA. “Home prices continue to lift, supported by low interest rates and the return of property investors to the market.”
CBA has forecasted home prices across the country to rise 14% over 2021 and 2022.
At the same time, educations spending intentions are rising, although the level is still below May 2019. Health and fitness spending intent was also up.
“Compared to May 2020 we are seeing more spend on the type of routine, preventative health care such as dentist and orthodontist visits, medical laboratory testing and optometrists. Many of these services were shut during the lockdown period and many people simply put this type of care on hold last year,” Ms Allen said.
People are also busting to travel. With the continued international border closures adding to pent up demand, Australians are increasingly visiting aquariums, camper and RV dealers, motor home and RV rental, tourist attractions and trailer parks and camp grounds, according to the data.
Travel Spending Intentions