Household spending growth slows in April: Australia

Household spending rose 6.0 per cent in April compared to the same time last year, according to figures released today by the Australian Bureau of Statistics (ABS).

Kate Lamb, ABS head of business indicators, said growth in household spending has slowed from high levels seen in the second half of 2022.

“From a peak of 29.1 per cent in August 2022, this month’s 6.0 per cent growth has followed a downward pattern from an 11.9 per cent rise in February and an 8.4 per cent rise in March,” Ms Lamb said.

“This is mainly due to lower growth in spending on consumer services, like holiday travel and eating out, which continues to normalise following the COVID-19 pandemic.”

Transport (+15.5 per cent) and Hotels, cafes and restaurants (+13.4 per cent) recorded the largest percentage increases across spending categories. These growth rates, however, are substantially lower compared to their recent peaks in August 2022 (63.5 per cent and 69.6 per cent respectively).

“Spending growth for goods has also slowed but to a lesser extent, as inflation continues to increase spending on food,” Ms Lamb said.

Household spending increased in all states and territories in April 2023 compared to April 2022.

Western Australia recorded the largest increase in spending (+9.6 per cent), led by large growth in Transport (+27.4 per cent) and Hotels, cafes and restaurants (+14.0 per cent).

“Remember this is compared to April 2022, when WA experienced a rise in COVID-19 Omicron cases later than other parts of the country, which impacted spending on these categories,” Ms Lamb said.

Rises in spending growth were smaller in all states and territories this month compared to last month. The Northern Territory had the smallest rise (+2.7 per cent), dropping from 9.7 per cent in March.