Get ready, because the holiday season is about to unleash a massive wave of spending! ANZ is predicting a substantial boost in consumer spending during the festive period, with a projected injection of $5.1 billion into the economy from December 21st, 2025, to January 5th, 2026. This represents a 4.7% increase compared to the same period last year. But here's where it gets interesting...
The surge in spending is expected to be fueled by categories that perfectly capture the holiday spirit. Think food and beverages, travel and leisure, digital goods, and even precious stones and metals. These combined are anticipated to make up roughly half of the total expenditure.
Kate Britton, ANZ's General Manager of Deposits and Payments, shared some insights: "Customers are embracing the festive spirit, and we're seeing that reflected in their spending habits, both leading up to Christmas Day and during the post-Christmas sales."
This seasonal boost is a welcome sign for businesses across the country. Consumers are using their downtime to treat themselves and their loved ones.
One such business benefiting from this trend is Michael Hill, a long-standing ANZ customer and a leading jewelry retailer. Jonathan Waecker, CEO of Michael Hill International Limited, expressed his excitement: "Christmas is one of our favorite moments of the year at Michael Hill, and the joy of gifting just keeps getting bigger. This season, we are celebrating with an incredible range of fine jewelry across key price points, making it easier than ever to find something truly special for the people you love. Our iconic packaging is more beautiful than ever, so every gift feels magical from the moment it is unwrapped. It is a time filled with sparkle, celebration, and the delight of giving something that lasts."
Let's dive into some key trends from 2024, which offer a glimpse into consumer behavior:
- Digital goods, including digital games, platform subscriptions, digital books, and apps, saw an impressive 50.9% year-on-year surge. Meanwhile, precious items experienced a 24% rise.
- Vehicle rentals (+20.5%) and camping/sports equipment (+20%) also witnessed strong growth.
- Holiday-driven demand spikes were evident across hotels (+31.9%), vehicle rentals (+31.5%), and wineries (+24.3%), compared to typical trading weeks.
Now, let's break down the state-by-state spending insights from 2024:
- Total festive spending reached $4.8 billion, an 8.25% increase from 2023.
- Victoria (VIC) led the way in overall spending with $1.32 billion, followed by New South Wales (NSW) at $1.24 billion.
- Queensland (QLD), Northern Territory (NT), and Western Australia (WA) recorded the largest year-on-year increases, at 10%, 9%, and 8.8% respectively.
- Western Australia had the highest spend per capita at $1,465 (up 6.2%), while Queensland saw the strongest per capita growth at 8%.
Here's a look at the holiday spending patterns:
- Christmas Day itself remains the lowest-spending day, despite growing from $96 million in 2023 to $121 million in 2024.
- Boxing Day sees a strong rebound, driven by post-Christmas sales, with $282 million spent on December 26th alone in 2024.
- Pre-Christmas spending is consistently high, with $415 million spent on Christmas Eve in 2024, up from $295 million in 2023.
And this is the part most people miss... The data specifically covers the period from December 21st to January 5th.
What do you think? Are you surprised by any of these spending trends? Do you anticipate spending more or less this holiday season? Share your thoughts in the comments below!
