Consumers are losing money on toilet paper, detergents, washing machines and detergent and so are their customers, according to new research.
Consumer spending on consumer durable items rose in the fourth quarter to $6.1 billion, compared to $5.9 billion in the third quarter.
“The consumer surplus is an economic term that refers to the money consumers are spending at home, not on goods and services,” Dr Paul Ngo said.
“It’s a big driver of our economic performance.”
Dr Ngo has been studying consumer expenditure in Australia for more than 20 years and has found consumers spend more on household durables than on goods.
“They’re spending more on toiletries and detergants and household cleaners, but they’re spending less on food, and less on clothing and footwear,” he said.
In the third and fourth quarters, consumers were spending $4.5 billion on toilet seats, $3.9 on detergences, and $1.5 on detergent.
“We’re spending on toilet seat, detergent, detergaing, washing machine, dishwasher, and a lot of other items that are household-related, and then we’re spending some of that on other items,” he explained.
“These items are really the biggest drivers of consumer surplus.”
Consumer surplus is a big factor in our economic growth.
It’s a large part of the reason why our disposable income has been increasing over the last 10 years, he said, and the research also showed consumers are saving money in a number of ways.
“People are saving their money on a lot more appliances and other household items,” Dr Ngo explained.
Consumer savings can be used to help consumers meet their financial goals.
“In terms of saving money, the consumer is a really good way to do it because we know what they’re looking for,” he added.
“You know, they’ll say to their friends, ‘Well, what I really want to do is buy more stuff.'”
If you know what your consumer needs and what you’re looking to buy, you can really save money on that.
“If they’ve got the right appliances, the right detergency, they’ve done all the things you’re asking them to do.”‘
There are some things we can do’The research also found consumers are willing to spend more money on the things that can help them meet their spending goals.
The top consumer spending categories are washing machines, deterger cartridges and detergas, and all three are up from $3 billion in 2014 to $2.6 billion in 2018.
“Consumer spending is a lot bigger than it has been for a while,” Dr Adam Zaretsky said.”[It’s] much larger than the spending in the last year, because we’re seeing an increase in spending across all these categories.”
“So what we’re really seeing is consumer spending is increasing, so consumers are being more aggressive with their spending and it’s paying off.”
Dr Zareitsch said consumers were becoming more educated about how they could save.
“That’s what’s so cool about consumer spending,” he noted.
“I think what’s happening is that consumers are finding out that they can save money.”
Now they’re taking the plunge and taking a chance on spending things that are going to help them spend more.