Airwallex has found national spending has dropped over $500m YoY, despite pockets of inflation driven growth.
The Airwallex Quarterly Digital Economy Index has recorded year-to-date spending per adult, as well as quarter-by-quarter snapshots of the digital economy by state and industry. The Q2 index has revealed that despite upticks in online education and travel spending, there has been a decline in retail, insurance and self-managed investments.
Australians are spending 1.82 percent less this time last year, with the Q2 spend dropping $523.3 million compared to Q2 2022. Online spend is estimated to have dropped $587 per adult in that period.
Victoria however, has seen a 6 percent lift in digital business revenue turnover YoY with ecommerce spending up over 8 percent.
Digital travel businesses in New South Wales have seen a rebound compared to Q1 this year, up 15 percent.
Queensland’s digital economy rose nearly 4 percent, influenced by the online travel boom, however ecommerce has dropped over 5 percent.
Western Australia’s digital economy grew at 2.81 percent for the year, thanks to a surge in online technology and digital content spending and travel booked online. However, ecommerce businesses have seen an overall 7.71 percent drop in spending compared to last year, and down 4.9 percent on Q1.
According to the report, South Australia had the worst performing digital economy this quarter, with online spending shrinking 16.77 percent and declines recorded across all industries in the digital economy.
Tasmania’s digital revenue turnover increased 12.8 percent compared to last year. However, it records a near 5 percent drop since Q1.
“Across the digital economy, we see Australians are holding back on their discretionary spending,” said Airwallex Director of Strategy for Australia and New Zealand, Amelia Hamer.
“As interest rates have climbed and cost-of-living pressures have increased, it’s no surprise Australians are being more selective about where they spend online. We see several bright spots in Australia’s digital economy, with the technology, education and travel sectors seeing the most upside.”
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