The graph that proves the Melbourne Cup actually does stop the nation

The Melbourne Cup actually does “stop the nation” – just look at Australia’s spending data during the race, it dives 33 per cent, according to Commonwealth Bank.

In the hours leading up to the big race, we spend, tap transfer, we get cash out, but for the six minutes between the start of the race and when the winner is announced money in Australia simply stops moving.

(Source: Commonwealth Bank, Graphics: Ying Z. Wang)

Commonwealth Bank transaction data shows a clear increase in activity throughout the morning to around midday, followed by a sharp fall as the gates open on Australia’s most prestigious horse race at 3pm.

And once the race is over, we’re back spending, but nowhere near what we were just 30 minutes before.

Angus Gilfillan, NAB executive general manager of consumer lending, confirmed the trend.

“Aussies love a celebration and that’s really reflected in the way we see customers using their cards and money in the first week of November,” he told Domain.

“We’re expecting there to be a frenzy of activity in the days and hours leading up to the Cup, as customers spend up at retailers and on hospitality, which is in stark contrast to an average week day.”

Punters appear keen to have some cash in their pocket, despite a growing reliance on online banking, with the volume of cash withdrawals in the two days before the Melbourne Cup around 20 per cent greater than the average October Monday and Tuesday. 

Bank apps, meanwhile, are barely touched during the race – NAB reports a 50 per cent drop in log ins for the 15 minute period.

(Source: Optus, Graphics: Ying Z. Wang)

For the most part, though, Cup day is spent with mobile phones firmly in hand, according to Optus data, which show a 50 per cent spike in calls, a 131 per cent jump in data downloads, and a huge 307 per cent surge in data uploaded on Cup day versus any other Tuesday.

“Ahead of the 2017 Melbourne Cup, Optus has upgraded mobile towers in the Flemington racecourse area and will deploy a temporary Cell on Wheels [COW] to ensure that consumers are able to remain connected in the large crowds,” the telco said.

Transactions per hour via NAB bank cards (Source: NAB, Graphics: Ying Z. Wang)

All the hype leading up to the big race, and the action on the day, make for a huge economic boost for Victoria – in fact, the Melbourne Cup carnival contributed almost $427 million in gross economic benefits to the state last year, according to Victorian Racing Club chairman Amanda Elliot.

“Such a sizeable economic benefit filters right through the economy, and especially to sectors such as tourism, retail and fashion, hospitality and accommodation, supporting jobs across the state,” she said. 

More than 80,000 interstate visitors come to Victoria to see the races, spending almost $40 million on accommodation alone and another $44 million is spent on fashion and retail, according to figures cited by the VRC.

But for the task of literally stopping Australia for between 3½ and six minutes, what else is as reliable as the Melbourne Cup?