Household consumption increased 7.9% in the September quarter, the largest rise in the 60 year history of the national accounts, reflecting a partial recovery from the unprecedented 12.5% fall in the June quarter. The quarterly rise reflects increased spending with easing of COVID-19 restrictions. Consumption nevertheless remained weak through the year, down 6.5%.
Household spending on services increased 9.8%, driven by discretionary services, and led the partial recovery in overall household spending. Goods consumption increased 5.2%, with strong demand across all the broad categories.
Most jurisdictions eased COVID-19 restrictions on households and businesses throughout the September quarter.
Household spending in the quarter was driven by partial recovery in spending on hotels, cafes and restaurants, recreation and culture and transport. Household spending remained weak through the year, reflecting reduced holiday travel due to international and domestic border closures, as well as the Victorian lockdown. Household expenditure on health categories recovered in the September quarter, up 26.0% as visits to health providers increased and elective surgeries resumed.
Household consumption on goods increased 5.2% in the September quarter and strengthened through the year to 3.5%. Demand for imported goods such as household appliances, audio visual equipment and furniture remained elevated. Global supply and logistics disruptions earlier this year resulted in slowing of imported consumption goods which rebounded in the September quarter.
The recovery in these areas of household spending is consistent with the findings from the Household Impacts of COVID-19 Survey – Returning to activities.