Growth in household spending slows in October
Household spending was 2.7 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 slowed in recent months, as households tighten their spending amid cost-of-living pressures.
“The 2.7 per cent increase in the year to October follows a downward pattern after spending rose 5.2 per cent in the year to August, and 4.3 per cent in the year to September.
“Less spending on discretionary services such as eating out, accommodation, and recreation and cultural services all contributed to the slowdown.
“Compared to October last year, discretionary spending fell 2.0 per cent, while non-discretionary spending rose 7.0 per cent.”
The overall rise in household spending was driven by increases in transport (+13.4 per cent), health (+10.8 per cent), and alcoholic beverages and tobacco (+7.1 per cent).
Compared to the same time last year, household spending rose in all states and territories.
Western Australia had the largest rise in spending (+6.9 per cent), followed by the Australian Capital Territory (+5.5 per cent) and South Australia (+4.3 per cent).
Comparing this month to last month, the Northern Territory was the only state or territory to record a higher spending growth rate. The Australian Capital Territory had the largest fall in growth, dropping from +7.8 per cent in September to +5.5 per cent in October.
Media notes
- A media statement on Thursday 23 November 2023 announced that the ABS would be enhancing the Monthly Household Spending Indicator in 2024, and ceasing the publication of Retail Trade, Australia after the June 2025 reference period. For more information, please visit the Future cessation of the Retail Business Survey and Retail Trade Publication webpage.
- The indicator is produced using aggregated and de-identified card and bank transactions from banking and financial institutions.
- The indicator includes nine of the 13 key divisions classified, according to the Classification of Individual Consumption by Purpose (COICOP).
- The indicator is produced in current price original and current price calendar adjusted terms only.
- Until the indicator is seasonally adjusted, it is advised to focus on annual comparisons (e.g. October 2023 compared to October 2022).
- Significant events such as COVID-19 can lead to very strong annual rises. Care should be given when comparing periods with these events.
- Care should be given when comparing Household Spending Indicator estimates with other ABS products. See the Methodology page for further information.
- When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
- For media requests and interviews, contact the ABS Media Team via media@abs.gov.au (8.30am-5pm Mon-Fri).
- Subscribe to our media release notification service to get notified of ABS media releases or publications upon their release.