Yesterday Dr Sherman Chan, API Chief Economist, shared a member-first exclusive providing detailed analysis of June Quarter GDP data, curated into a two-pages.

Analysis

From the June quarter GDP data, league table comparisons show that the Accommodation and Food Services industry was the second-best performer, recording 1.9% quarterly growth, just behind Mining at 2.3%.

Many observers, including the ABS, attributed this strong performance to the timing of the Easter and ANZAC Day public holidays, which likely encouraged households to take extended breaks and increase spending on leisure activities.

While the public holidays most likely supported the hospitality industry in the June quarter, the latest Household Spending Indicator suggests the positive momentum continued into July. Spending on ‘hotels, cafes and restaurants’ rose 1.4% month-on-month, and compared to July last year, the increase was 7.2% against consumer inflation of 2.8% over the same period.

The hospitality industry is also likely a key beneficiary of the RBA’s interest rate cuts this year. With more financial breathing space from reduced mortgage repayments, households are increasingly embracing discretionary consumption.

This represents a welcome turnaround for the hospitality sector, which faced heightened business stress during the peak of the cost-of-living crisis, compounded by rising operating costs and worker shortages.

Read the full report

Economic Data Note