Household spending rose 0.5 per cent in July, seasonally adjusted, extending a three‑month run of gains and lifting annual growth to 5.1 per cent — the strongest since November 2023, according to the Australian Bureau of Statistics.
Robert Ewing, ABS head of business statistics, said: ‘Household spending rose for the third month in a row in July, and has now gone up nine times in the last 10 months.
‘Household spending is 5.1 per cent higher than the same time last year. This is the highest annual growth since November 2023.’
The July rise followed increases of 0.3 per cent in June and 1.0 per cent in May, ABS seasonally adjusted current‑price figures show.
Services led the month’s gains as households spent more on health, travel and dining, while goods fell after mid‑year sales. Ewing said: ‘Households spent more on health services, hotel accommodation, air travel, and dining out during July. This contributed to a 1.6 per cent rise for Services spending.
‘In contrast, Goods spending fell 0.3 per cent after mid-year sales boosted spending by 0.9 per cent in June.’
Five of the nine spending categories rose in July. Health led with a 1.8 per cent lift, while Transport and Miscellaneous goods and services each rose 1.5 per cent. Hotels, cafes and restaurants increased 1.4 per cent. The largest declines were in Alcoholic beverages and tobacco (-1.9 per cent) and Furnishings and household equipment (-1.4 per cent); Clothing and footwear fell 1.2 per cent.
Through the year to July, Miscellaneous goods and services rose 8.8 per cent and Recreation and culture 8.2 per cent. Services spending was 8.0 per cent higher than a year earlier, compared with a 2.7 per cent rise for goods.
Spending increased in seven of the eight states and territories. The Northern Territory posted the biggest monthly rise at 2.2 per cent, followed by Western Australia at 1.6 per cent. Tasmania rose 1.0 per cent, Queensland and South Australia each gained 0.9 per cent, Victoria was up 0.6 per cent and the ACT edged 0.1 per cent higher. New South Wales was the only state to fall, down 0.3 per cent.
The ABS Household Spending Indicator is compiled from aggregated, de‑identified bank card transactions, supermarket scanner data and motor vehicle sales data. The bureau cautions against direct comparisons with other ABS products due to methodological differences.
Source: Australian Bureau of Statistics.
