Australian household spending experienced a modest increase of 0.5 per cent in June, according to the latest figures released by the Australian Bureau of Statistics (ABS). This follows a more substantial rise of 1 per cent in May and a period of stagnation in April. The data is seasonally adjusted to provide a clearer picture of underlying trends. Robert Ewing, head of business statistics at the ABS, noted that increased spending on goods was the primary driver of the overall rise in household expenditure for the month.
Specifically, spending on goods saw a significant boost of 1.3 per cent, fuelled by increased household expenditure on food items, new vehicles, and electronics. In contrast, spending on services experienced a decline of 0.5 per cent, reversing two consecutive months of growth in that sector. This divergence highlights a shift in consumer spending patterns during the period, with Australians prioritising tangible goods over services.
Across various spending categories, six out of nine experienced growth in June. Leading the charge were furnishings and household equipment, which saw a 2.0 per cent increase, followed by clothing and footwear with a 1.6 per cent rise, and food, which increased by 1.5 per cent. These figures suggest a focus on improving and updating homes and wardrobes, alongside consistent spending on essential food items.
However, not all categories experienced growth. Spending on alcoholic beverages and tobacco saw a notable decline of 2.4 per cent, while hotels, cafes, and restaurants experienced a decrease of 0.8 per cent. Health-related spending also fell slightly, decreasing by 0.3 per cent, indicating varied consumer priorities across different sectors of the economy.
