Hopes Black Friday could sustain spending growth
The impact of Black Friday sales on the national economy will be revealed as part of the release of key spending data.
Monthly household spending figures for November will be announced on Monday, as pre-Christmas sales begin.
Although Bureau of Statistics Australia is yet to release official figures, Commonwealth Bank data for December showed sales, as well as sporting events such as the Ashes and concerts by Oasis and AC/DC, led to a boost in spending growth for the month.
Household spending rose 1.3 percent in October, more than five percent higher than the previous year.
NAB senior economist Taylor Nugent said a 0.5 per cent increase was likely in November.
“The main focus will be whether the broad-based increase in spending in October can be sustained,” he said.
“There is a greater risk of refunds if previous promotional discounts push spending beyond November.”
Black Friday sales are expected to have an impact on discretionary sales figures, but shopping events have not contributed to inflationary pressures.
Monthly inflation data released on Wednesday showed that the consumer price index fell from 3.8 percent to 3.4 percent in November.
“Black Friday sales did not make a significant contribution to the change in annual CPI inflation from October through November, as this year’s price declines were similar to last year,” said Michelle Marquardt, the bureau’s head of price statistics.
Next week will also see consumer sentiment data, which Westpac will release on Tuesday.
The index had cautiously dipped into pessimistic territory by the end of 2025, falling nine percent in December.
These figures come after the index reached a net positive reading in November; Consumers were more optimistic about the economic outlook for the first time since the Covid-19 outbreak.
The Commonwealth Bank will also publish additional household spending data from December on Thursday.
Meanwhile, investors on Wall Street ignored the weaker-than-expected US employment report on expectations that the Fed would cut interest rates this year.
The S&P 500 rose to a record close on Friday, boosted by Broadcom and other chip makers.
The leading company index closed the session at 6,966.28 points with an increase of 0.65 percent.
Nasdaq increased by 0.82 percent to 23,671.35 points, while the Dow Jones Industrial Average increased by 0.48 percent to 49,504.07 points.
Australian stock futures rose 29 points, or 0.33 percent, to 11,025.
The S&P/ASX200 index closed Friday by three points, down 0.03 percent, at 8,717.8 points, while the All Ordinaries fell by nearly half a point to 9,045.9 points.
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