Growth in household spending slows in October: Australia

Household spending was 2.7 per cent higher than a year ago, according to figures released today by the Australian Bureau of Statistics (ABS).

Robert Ewing, ABS head of business statistics, said growth in household spending has slowed in recent months, as households tighten their spending amid cost-of-living pressures.

“The 2.7 per cent increase in the year to October follows a downward pattern after spending rose 5.2 per cent in the year to August, and 4.3 per cent in the year to September.

“Less spending on discretionary services such as eating out, accommodation, and recreation and cultural services all contributed to the slowdown.

“Compared to October last year, discretionary spending fell 2.0 per cent, while non-discretionary spending rose 7.0 per cent.”

The overall rise in household spending was driven by increases in transport (+13.4 per cent), health (+10.8 per cent), and alcoholic beverages and tobacco (+7.1 per cent).

Compared to the same time last year, household spending rose in all states and territories.

Western Australia had the largest rise in spending (+6.9 per cent), followed by the Australian Capital Territory (+5.5 per cent) and South Australia (+4.3 per cent).

Comparing this month to last month, the Northern Territory was the only state or territory to record a higher spending growth rate. The Australian Capital Territory had the largest fall in growth, dropping from +7.8 per cent in September to +5.5 per cent in October.