Recent blockade restrictions in New South Wales (NSW) had less impact on state spending activity than the recent Victorian hard blockade.
Data from both Commonwealth Bank and Westpac Bank revealed that overall household card activity did not result in a significant decline in NSW after the first week of restriction.
Commonwealth Bank Data found Credit and debit spending for the week ending July 2 decreased by 1.2 percentage points in New South Wales, compared to a 21 percent point decrease in the first week of the Victorian blockade.
Similarly, during the first week of each blockade, the Westpac Card Tracker Index (pdfIn the case of NSW, it decreased by 0.3 points compared to the decrease of 13.5 points in Victoria.
“This data shows that the type of blockade is as important to spending as the community’s response,” said Belinda Allen, senior economist at Commonwealth Bank.
When Victoria enters a four-week blockade on May 28, all citizens of the state are restricted from leaving home unless there are five reasons, such as participating in a permitted job or study. it was done. A 5km travel limit was also imposed for exercise and shopping.
The blockade of Sydney, which began on June 26, only allowed people to leave home for similar reasons as in Victoria. However, I was able to participate in work and study without permission, and groups of 10 or less were able to gather outside.
In addition, the region’s New South Wales did not receive a stay-at-home order, but there were restrictions on venue capacity and social distance rules.
“Given that the lockdown did not extend to the region’s New South Wales, the blockade in Greater Sydney covered about 70% of New South Wales’ population,” Allen said. “The biggest drop in spending in New South Wales is clothing and shoes, general retail, personal care, transportation, and of course food and drink.”
Westpac senior economist Matthew Hassan said the blockade had a clear negative impact, but card data suggests that people’s spending habits are evolving to be more resilient.
“It is becoming increasingly difficult to assess the impact of COVID blockade measures,” Hassan said. “Consumers have learned and adapted to similar size shocking restrictions on mobility that have a more modest impact on card activity during recent blockades.”