McKinsey’s Levavi isn’t entirely convinced,saying that consumers are reassessing their spending across the board as mortgage repayments and the overall cost of living rise.

“If we see more rate hikes,yes they can cut some spending...but they’ve already cut pretty deeply into their spending,” he said.

“As a general rule across the population,a bit of cutting in certain areas will happen and definitely a reduction in splurging.”

According to McKinsey’s survey,younger mortgage holders have already cut back spending on clothes. Meanwhile,ANZ’s retail spending data also suggests that categories like fashion are seeing weaker sales momentum in the lead-up to December compared with the past couple of years.

Spending information tracked by the bank over the Black Friday and Cyber Monday weekend suggests spending in non-food retail was 10 per cent weaker than in 2019 and 20 per cent lower than the peak period of 2020,which was marked by COVID lockdowns.

Clothing,electronics,fashion and toy sales were all lower than in 2021,senior economist Adelaide Timbrell said in a note on Thursday.

Retail analysts have been tipping a slowdown in apparel spending for months,along with other discretionary categories,and many are predicting essential retailers like supermarkets will show the best returns over the next year.

Despite this,brands that are exposed to younger shoppers who have fewer other financial obligations are tipped to be well-placed. Jarden’s equities team says they favour companies with “exposure to consumers that can spend”,like Premier Investments and youth clothing brand Universal.

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