DANIEL NEWELL: Gen Z still big spenders as rival generations tighten belts, Bankwest data reveals

WA’s gen Zers are cementing their position as the powerhouse generation when it comes to spending, outpacing their older rivals who are further tightening their belts amid the lingering cost-of-living squeeze.

Data released by Bankwest for September shows the volume of transactions among the generation — born between 1997 and 2012 — has soared 12 per cent in the past year.

The average value of those transactions was up 6 per cent, driven by spending on travel and other transport such as ride sharing, taxis and paid parking.

The bank’s monthly Spend Trends analysis delves into WA customer credit and debit activity to spot responses to fluctuating economic conditions.

It revealed gen Z was the only generation to show a rise in the number of unique customers transacting while millennials and gen Xers (both down 4 per cent) and baby boomers (down 5 per cent) recorded sharp retreats for the year to the end of September.

In average value per transaction terms, millennial spending was up 5 per cent, gen X jumped 4 per cent and baby boomers are spending no more or less than they were a year ago.

Bankwest’s data also showed West Australians are spending more on utilities — which incorporates energy, water, phone plans, streaming services and other digital subscriptions — compared with last year.

The average transaction value for utilities increased by 14 per cent year-on-year — the most significant rise among all categories, reflecting elevated billing and subscription expenses.

Gen X led the surge, with total spending rocketing 14 per cent more on utilities than a year ago — and about 16 per cent more for each transaction year-on-year. Baby boomers, though more cautious, still logged a 14 per cent spending increase and a 13 per cent rise in average spend.

“Whether it’s energy or water bills, or digital subscriptions, such as streaming services, the cost of staying connected and powered is essential and customers are adjusting their budgets accordingly,” said Bankwest head of everyday products Allan Emery.

“Utilities spending has risen 13 per cent year-on-year, with higher average transaction values observed across all generations in recent months, highlighting the seeming unavoidable nature of many of these costs.

“While some digital subscriptions, such as streaming services, may be optional, and keeping track of them can be a challenge, for many families it would be difficult to imagine doing without them.”

Overall, the spending data showed consumers remained wary of splashing the cash as many households await further rate relief from the Reserve Bank.

The number of customers transacting rose just one per cent between August and September and there was only a 1.9 per cent rise in total transaction volumes. The average spend per transaction fell one per cent but was up 3 per cent on the same time last year.