Household spending was 0.7 per cent lower when compared to July last year, according to figures released today by the Australian Bureau of Statistics (ABS).
Robert Ewing, ABS head of business statistics, said households have curbed their spending over the past 12 months amid higher interest rates and inflation.
“This is the first time since February 2021 that the spending indicator has fallen.
“Spending on discretionary goods and services was down for the fourth straight month. It fell 3.3 per cent over the year, as households adapt to cost of living pressures.
“Non-discretionary spending rose 1.7 per cent, which is the lowest growth rate since early 2021.”
| Discretionary – Through the year change (%) | Non Discretionary – Through the year change (%) | |
|---|---|---|
| Jan-20 | 8.1 | 6.4 |
| Feb-20 | 2.8 | 0.6 |
| Mar-20 | -7.3 | -4.1 |
| Apr-20 | -28.0 | -35.0 |
| May-20 | -9.7 | -28.9 |
| Jun-20 | -6.5 | -17.8 |
| Jul-20 | -2.3 | -14.3 |
| Aug-20 | -8.8 | -19.2 |
| Sep-20 | -5.1 | -13.5 |
| Oct-20 | -4.8 | -12.9 |
| Nov-20 | 8.3 | -8.5 |
| Dec-20 | 1.8 | -6.3 |
| Jan-21 | -0.8 | -9.8 |
| Feb-21 | 2.9 | -6.0 |
| Mar-21 | 16.9 | 1.9 |
| Apr-21 | 48.4 | 48.5 |
| May-21 | 19.3 | 36.8 |
| Jun-21 | 12.2 | 17.9 |
| Jul-21 | 0.7 | 7.6 |
| Aug-21 | 2.3 | 7.7 |
| Sep-21 | 3.6 | 6.5 |
| Oct-21 | 9.6 | 7.9 |
| Nov-21 | 9.3 | 9.0 |
| Dec-21 | 4.4 | 7.2 |
| Jan-22 | 5.4 | 7.6 |
| Feb-22 | 11.6 | 11.9 |
| Mar-22 | 10.3 | 10.0 |
| Apr-22 | 13.7 | 11.2 |
| May-22 | 12.3 | 12.3 |
| Jun-22 | 13.5 | 16.8 |
| Jul-22 | 22.3 | 24.6 |
| Aug-22 | 27.9 | 29.7 |
| Sep-22 | 28.0 | 29.4 |
| Oct-22 | 18.8 | 24.9 |
| Nov-22 | 7.9 | 19.6 |
| Dec-22 | 7.9 | 17.3 |
| Jan-23 | 12.1 | 20.9 |
| Feb-23 | 4.6 | 16.1 |
| Mar-23 | 1.5 | 12.8 |
| Apr-23 | -0.4 | 10.5 |
| May-23 | -0.3 | 7.3 |
| Jun-23 | -0.3 | 4.7 |
| Jul-23 | -3.3 | 1.7 |
Goods spending saw its largest decline since July 2021 with a 4.1 per cent fall, while spending on Services rose 2.4 per cent.
The overall fall in household spending compared to July last year was driven by Furnishings and household equipment (-7.9 per cent), Clothing and footwear (-7.5 per cent), and Recreation and culture (-3.9 per cent).
Household spending fell in four states and territories in July 2023 compared to July 2022, and rose in the other four.
The Northern Territory recorded the largest drop in spending (-6.7 per cent), led by falls for Clothing and footwear (-23.0 per cent) and Recreation and culture (-15.5 per cent).
When comparing this month to last month, spending growth rates were lower in all states and territories. The NT also had the largest slowdown in spending compared to the same time last year, dropping from -0.7 per cent in June to -6.7 per cent in July.
| May-2023 (%) | Jun-2023 (%) | Jul-2023 (%) | |
|---|---|---|---|
| NSW | 3.8 | 2.7 | -0.9 |
| Vic. | 2.7 | 0.8 | -2.2 |
| Qld | 3.9 | 2.5 | 0.5 |
| SA | 4.0 | 4.1 | 0.4 |
| WA | 4.5 | 2.8 | 0.7 |
| Tas. | 1.9 | 1.7 | -1.4 |
| NT | 0.8 | -0.7 | -6.7 |
| ACT | 4.2 | 1.7 | 1.0 |
