10 Oct Self-care spending through the roof
Australians are better prioritising their own wellbeing during the pandemic despite cutting back on expenses across other areas if the latest spending data is anything to go by.
Consumer spending data from Zip’s Weekly Spending Index has revealed concerns about the wellbeing of Australians, especially given the lack of normalcy and the recent move to stage 4 restrictions in Melbourne.
The heightened need for self-care is reflected in the spending index, with spending seen to have “significantly” increased over July within the categories of debt consolidation services and mental health services compared with comparative figures from the same period last year.
Perhaps realising that there’s no end in sight for financial stress, spending on debt consolidation services hit its highest rate during the COVID period during July – up 38 per cent.
Also highlighting the plight in which many Australians find themselves in, counselling and mental health service spending also saw a huge lift – up 47 per cent over the month.
Zip has also identified increased investments in self-care extending to personal appearance.
Cosmetic procedure spending was more than double that of July 2019 figures, up a whopping 106 per cent in July 2020.
Tattooists also saw stronger consumer activity, up 59 per cent after months of losses.
An observable increase in spending with dating agencies also occurred over July – which was up 90 per cent on the same time last year – leading Zip to draw a tenuous link between the increased spending on physical appearance and a return to dating activity.
But it’s not all good news.
Following the wide-scale lockdowns in Greater Melbourne, border closures and spikes in COVID-19 cases across the month, Australia’s hopes for a move towards economic recovery have flattened.
“Instead of building on the nation’s retail growth in June, we instead are looking at a far bleaker picture that may spell the end for many bricks and mortar businesses. A second lockdown period was the last thing many businesses could have afforded,” said Zip’s co-founder and COO, Peter Gray.
He considered July as “an incredibly tough month for many industries, and we saw some gains made in June either paused or wiped out completely”.
“More concerning was the fact that many Australians were turning to debt consolidators and mental health services to support them during their plight.”
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Article reproduced from Nest Egg by Grace Ormsby
