Household spending rises again in May: Australia

Household spending rose 7.9 per cent in May 2022, compared to the same time last year, according to figures released today by the Australian Bureau of Statistics (ABS).

Jacqui Vitas, head of macroeconomic statistics at the ABS, said household spending increased in all spending categories, with the largest increase in spending on services (10.2 per cent).

“Strength in the services categories was driven by transport (up 14.5 per cent), as air travel continued to recover, and higher petrol prices increased motor vehicle running costs.”

Strong growth was also seen in spending on miscellaneous goods and services (up 12.6 per cent), hotels cafes and restaurants (up 10.3 per cent), and recreation and culture (up 10.0 per cent).

All states and territories recorded increases in household spending in May 2022, compared to May 2021. Queensland (10.4 per cent), South Australia (10.4 per cent) and Victoria (9.1 percent) recorded the strongest increases in spending through the year.

Compared to pre-pandemic January 2020 estimates, total household spending was 10.0 per cent higher in current price, calendar adjusted terms, reflecting recovery in most spending categories. Transport (down 2.3 per cent) and hotels, cafes and restaurants (down 1.6 per cent) remained the only spending categories below pre-pandemic levels.

The line graph above shows the household spending index numbers in current price, calendar adjusted terms on goods and services.