But the Commonwealth Bank’s updated household spending intentions index suggests the situation for travel and entertainment is about to shift.

Household spending intentions lifted 6.6 per cent month-on-month and 4.4 per cent over the year, reflecting the reopening of Australia’s two largest cities and a willingness of Australians to get out and spend.

Planned spending on travel – mainly travel agents, airlines and cruise ships – drove much of the growth, lifting 53 per cent in October, while planned entertainment spending lifted 14.7 per cent.

“It does indicate once people are allowed out and about, or they know they will be allowed out, they are keen to spend on travel pretty quickly,” CBA chief economist Stephen Halmarick said.

Retail spending intentions lifted 9.1 per cent over the month, while spending on household services, which includes things such as cleaners, hairdressers and beauty salons, also showed strong growth, at 24 per cent.

“Definitely during lockdown goods spending was much stronger than services spending. As we’re come out of lockdown, there’s been a bit if a pivot back to services,” Mr Halmarick said.

But Mr McMenamin said the improvement in economic conditions over coming months would not be without its challenges.

Strong demand and supply chain disruptions pushed input costs to the highest level in a decade, according to the National Australia Bank monthly business survey, and consumer inflation expectations edged up.

“This is creating margin pressures for businesses and constraints on accessing inputs, and the key questions now are, how effectively can businesses pass those costs on to consumers, and how can they meet demand?” NAB’s senior economist Gareth Spence said.

The share of companies reporting availability of materials as a major constraint has surged to 43 per cent over the past year, which is more than 20 percentage points above average levels, and significantly higher than any point in the history of the survey.

Retail spending intentions lifted 9.1 per cent over the month, while spending on household services also showed strong growth, at 24 per cent. Home buying intentions dropped slightly but remain highly elevated.

Business conditions and confidence rose in October, according to NAB, while ANZ’s latest consumer survey showed confidence rose 0.6 per cent. Both indexes are in positive territory showing more people are optimistic than pessimistic.