Australian household spending edged 0.5 per cent higher in June, seasonally adjusted, after a 1.0 per cent rise in May and a flat result in April, according to figures released by the Australian Bureau of Statistics.
“People buying more goods drove the overall rise in household spending in June.
“Goods spending rose 1.3 per cent as households spent more on food, new vehicles, and electronics.
‘Meanwhile, spending on services fell by 0.5 per cent, after two months of growth.’
Six of the nine spending categories rose in June. The strongest gains were in Furnishings and household equipment (up 2.0 per cent), Clothing and footwear (up 1.6 per cent) and food (up 1.5 per cent). Alcoholic beverages and tobacco (down 2.4 per cent), Hotels, cafes and restaurants (down 0.8 per cent) and Health (down 0.3 per cent) were the only categories to decline.
Overall household spending was 4.8 per cent higher than a year earlier. Over the 12 months to June, Recreation and culture rose 7.9 per cent, food increased 7.5 per cent and Health was up 7.2 per cent. Services spending was 6.6 per cent higher than in June 2024, while goods spending rose 3.4 per cent.
Spending increased in seven of eight states and territories in June. The Northern Territory recorded the largest monthly rise (up 1.3 per cent), followed by New South Wales (up 1.1 per cent) and Tasmania (up 0.8 per cent). Western Australia was the only jurisdiction to fall (down 0.3 per cent). Victoria and South Australia both edged up 0.1 per cent, Queensland rose 0.5 per cent and the ACT was up 0.6 per cent.
On a volume basis, household spending rose 0.7 per cent in the June quarter, seasonally adjusted, following a 0.5 per cent increase in the March quarter and a 1.4 per cent rise in the December quarter. “Household spending volumes rose for the third consecutive quarter, reflecting a steady improvement in consumer confidence as price pressures eased over the past year,” Mr Ewing said. Discretionary categories led the quarterly volumes gain, with Recreation and culture up 1.8 per cent and Hotels, cafes and restaurants up 1.6 per cent.
Total seasonally adjusted household spending volumes were $217.8 billion in the June quarter, up from $216.2 billion in the March quarter.
The ABS’s Monthly Household Spending Indicator is compiled from aggregated and de-identified bank card transactions, supermarket scanner data and motor vehicle sales data. The bureau advises care when comparing the indicator with other ABS products.
Source: Australian Bureau of Statistics.
