Citi Australia Credit Card Index: April 2021

Highlighted Findings:

• Spend for April 2021 is 35% higher than spend in April 2020, where spend plummeted to the lowest point in years due to the global pandemic.
• April marks the third month straight Citi Australia has recorded spend above COVID levels, which is a positive indication of Australia's sustained economic recovery.
• Citi rewards points redemptions increased this month in travel categories and Velocity points as borders continue to open.

"A year can make a world of difference, and that is certainly the case when it comes to credit card spend for this month. April 2020 was the worst month for credit card spend in at least four years, and it's exciting to see April 2021 tell a much more positive consumer story, as it is the third month straight where credit card spend returned to pre-COVID levels," said Choong Yu Lum, Head of Credit Cards and Loans at Citi Australia.

"While we did record a slight drop in spend month on month, this is attributed to April typically being a quieter month as children head back to school and recreational activities slow down ahead of winter."

Top 10 – spend by industry

April

"The announcement of the New Zealand travel bubble early in the month has propelled airline spend. We saw airline spend jump four places in ranking to number 15 by industry, and anticipate this will increase over the next few months as more families are reunited with their loved ones from across the Tasman. Supermarkets continue to dominate as the largest spend category, especially Easter this month." Mr Lum said.

Travel makes a resurgence in rewards point spend

"Rewards redemption rose almost 6% in April. E-vouchers continue to be the most popular option, with a 15% increase this month, and in line with increased spending on household goods – Kogan is up 32%. Resurging after a year's lull are Travel and Airline categories: general travel and experience redemption was up 10%, and Velocity points up 14%. It is another strong indication that our trans-Tasman travel bubble is working when it comes to stimulating spend in tourism. Additionally, we expect that increased domestic travel has contributed to this spike" Mr Lum said.

What's next?

"We expect the trend of healthy consumer spending and increased demand for personal loans to continue into next month. We're anticipating an uptick in trans-Tasman travel that will drive spend in Hotels and Airline industries over the coming months." Mr Lum concluded.