Record growth in household consumption drives ongoing COVID-19 rebound

It’s a strong sign of the state’s ongoing economic recovery from COVID-19.

SA’s State Final Demand – a measure of local consumption in goods and services and capital investment – was well above the national average of 4.5 per cent, and only marginally lower than growth in New South Wales and Queensland (both 6.8 per cent).

Household consumption – up a record 11 per cent – is leading the recovery, as restrictions ease and the economy continues to open, with South Australians spending on retail, dining out, entertainment and tourism.

The figures follow ANZ data released yesterday which shows, while shopping growth was strong right across the country for the week to November 29, it was highest in SA and WA, which grew 52 per cent and 58 per cent respectively, compared to the same week the year before.

HIA chief economist Tim Reardon this morning also highlighted ABS single touch payroll data, showing jobs have recovered to within 0.8 per cent of the level in March (pre-COVID) – above the national average (graph below).

These figures also show wages in South Australia have recovered to within 0.7 per cent of the level in March – representing a stronger recovery than any other state.

Treasurer Rob Lucas welcomed the results as a strong sign of South Australia’s ongoing economic recovery from COVID-19.

“We are doing everything we can to save as many lives, livelihoods and local businesses as we can throughout the global pandemic, investing a record $4 billion in economic stimulus to turbo-charge the economy over the next 2 years,” said Mr Lucas.

“Today’s State Final Demand figures, together with jobs and wages data, paint a very encouraging picture of ongoing economic recovery as restrictions ease and South Australians feel more confident to get out and spend.”

The latest BankSA State Monitor also revealed the biggest bounce in business confidence since the survey started 23 years ago (rising by 20.3 points to 125.6) and consumer confidence increased for the third consecutive survey to reach a 7-year high.