Traffic from cars, vans and motorbikes fell in August, reinforcing softer spending signals from ANZ’s card transaction data.
Traffic volumes weakened in August, adding to signs households may be pulling back spending as fuel prices rise.
The bank said its Light Traffic Index, which tracks cars, vans and motorbikes, was often an early indicator of consumer spending and broader demand in the economy. It can provide a signal of changes in household activity several months before they are reflected in official economic data.
Heavy traffic, mostly trucks and buses, fell 2.2 percent during August, although it remained 1.3 percent higher than a year earlier.
ANZ said its Heavy Traffic Index was commonly used as a gauge of production and wider economic activity because it captures freight movements linked to manufacturing, retail trade and exports.
Chief economist Sharon Zollner said light traffic had been “noticeably lower in recent months”, likely reflecting people choosing to drive less as fuel prices increased.
She said the weakness mirrored the softer spending seen in ANZ’s latest card transaction data, suggesting households were becoming more cautious.
However, Zollner said weather may also have been a factor. She said a series of winter storms during August may have disrupted both road use and freight movements.
ANZ said the heavy traffic reading was also weaker than expected, although the series can be volatile from month to month.
The bank said it would be watching September’s data closely to determine whether the August weakness was a temporary interruption from poor weather, or potentially signs of a more sustained slowdown.