Household Spending Up 3.6% In Last 12 Months: Australia

Household spending was 3.6 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 risen from its low point in December 2023.

“The 3.6 per cent rise in spending follows increases of 1.2 per cent in December, and 2.9 per cent in January.”

“Spending on transport rose 12.3 per cent, making the largest contribution to total spending growth, as automotive fuel prices increased 4.1 per cent as shown in the monthly Consumer Price Index Indicator.

“Consumers are also spending more on transport services such as air travel, tours, and cruises compared to the same time last year,” Mr Ewing said.

Spending on discretionary goods and services fell 0.2 per cent, while non-discretionary spending rose 6.9 per cent, highlighting the shift in consumer behaviour due to cost-of-living pressures.

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

The largest rises in spending were seen in South Australia, up 7.9 per cent, and the Australian Capital Territory, up 7.6 per cent.

All states and territories had higher spending growth rates than in January. South Australia had the largest rise, up from 4.0 per cent in January to 7.9 per cent in February.