Insights

3 sectors Aussies are splashing cash on right now

Seeing where your fellow citizens want to spend money may tip you off as to which ASX shares might do well.
The post 3 sectors Aussies are splashing cash on right now appeared first on The Motley Fool Australia. –

A smiling woman with a handful of $100 notes, inidcating strong share price gains

Australians are ploughing their cash into travel, entertainment and real estate as the country well and truly moves past the COVID-19 recession.

That’s the finding from the latest Commonwealth Bank of Australia (ASX: CBA) Household Spending Intentions (HSI) survey that analysed spending in March.

The rebound in consumer activity matches the bank’s economists’ forecast that Australia would return to pre-pandemic growth levels by the first quarter of this year.

“The stronger Household Spending Intentions report is another signal that Australia’s economic recovery is ongoing,” said CBA chief economist Stephen Halmarick.

CBA economists expect Australia’s gross domestic product to grow 4.7% this year, while the unemployment rate drops to 5%.

The HSI each month combines the bank’s customer behaviour analysis with Google Trends data to form a view on where Australians want to spend their money.

Australians want to travel

The ban on international transit and localised lockdowns have Australians clamouring to travel again.

The sector saw the biggest year-on-year jump in spending intentions in the March survey.

“The travel sector was among the hardest hit by the onset of the COVID pandemic, with border closures and a country-wide lockdown stifling nearly all travel-related activity,” Halmarick said. 

“This month’s data, while distorted by base-effects, still demonstrates how far the sector has recovered since last year.”

The 12 months to March saw local facilities like amusement parks, aquariums, hotels, motels, resorts and motor homes attract increased interest. However, the annual pace of spending went backwards for air travel, cruising, timeshare accommodation, travel agents and coach lines.

Australians want to be entertained

The entertainment sector also enjoyed a big jump in interest and patronage in the month of March.

“A year ago, bars, clubs, restaurants and movie theatres wrangled with the swiftly escalating restrictions in the lead-up to a country-wide lockdown,” said Halmarick.

“This March, the picture for this sector is much improved, as pent-up demand among consumers helped spur both actual and prospective spending on the category.”

Within the sector, bars, restaurants, fast food outlets, boat rentals, bowling alleys, cable TV, movie theatres, dance halls, studios and schools, digital books, movies and music, and musical theatre venues fared the best.

Australians want real estate 

It’s already been well-publicised that the residential real estate market has been soaring the past 6 months.

The HSI confirms this, with spending intentions for property hitting an all-time high. Home loan applications and Google searches for homes skyrocketed in March. 

Halmarick said near-zero interest rates were to blame.

“We continue to see demand for residential property as a key source of support for the Australian economy in 2021.”

The CBA previously forecast that residential real estate prices would be up 8% nationally this year then another 6% in 2022. House prices alone are expected to end up 9% higher by the end of the year.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 sectors Aussies are splashing cash on right now appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!