Household spending rises again in July
Household spending rose 18.4 per cent in July 2022, compared to the same time last year, according to figures released today by the Australian Bureau of Statistics (ABS).
Jacqui Vitas, head of macroeconomic statistics at the ABS, said July saw the 17th consecutive month of through-the-year increases in total household spending, with increases in all spending categories.
“There were particularly strong increases in spending on clothing and footwear (up 45.0 per cent), transport (up 35.4 per cent) and hotels, cafes and restaurants (up 34.9 per cent). These increases were coming off the back of the COVID-19 Delta lockdown impacts that we saw last year, when there was reduced spending in these spending categories due to lockdowns.”
In contrast, spending categories not so impacted by lockdowns, such as food (up 2.0 per cent), alcoholic beverages and tobacco (up 1.2 per cent) and furnishings and household equipment (up 0.8 per cent) saw only moderate rises.
Pre-pandemic Comparison
Compared to pre-pandemic July 2019 estimates, total household spending was 11.9 per cent higher in current price, calendar adjusted terms.
The strongest increases over this period were in furnishings and household equipment (up 22.4 per cent), clothing and footwear (up 22.3 per cent) and recreation and culture (up 21.6 per cent).
This line graph shows the household spending index numbers in current price, calendar adjusted terms.
State Results
All states and territories saw increases in household spending in July 2022, compared to July 2021, with New South Wales (up 33.2 per cent) and South Australia (up 23.3 per cent) recording the highest increases in spending through the year. Both states experienced lockdowns due to the Delta wave this time last year.
Compared to pre-pandemic July 2019 estimates, all states showed rises in household spending with Queensland (up 19.1 per cent), South Australia (up 16.9 per cent) and Tasmania (up 16.4 per cent) showing the strongest rises.
This bar graph shows the changes in total household spending for all the states and territories when comparing the July 2022 estimates to the July 2021 and July 2019 (pre-pandemic) estimates.
Radio Grabs Transcript
Monthly Household Spending Indicator, July 2022
Spokesperson: Jacqui Vitas, head of Macroeconomic Statistics
Grab 1
In July, household spending increased 18.4 per cent compares to July last year, which was the 17th consecutive month of increases.
Grab 2
We saw increases in all spending categories, with particularly strong increases in spending on clothing and footwear transport, and hotels, cafes and restaurants. We need to remember that these increases were coming off the back of the COVID-19 Delta lockdown impacts that we saw last year when there was reduced spending in these spending categories due to lockdowns.
Grab 3
In contrast, spending categories not so impacted by lockdowns, such as food, alcoholic beverages and tobacco, and furnishings and household equipment saw only moderate rises in July compared to July last year.
Grab 4
Compared to July 2019, which was pre-pandemic, total household spending is 11.9 per cent higher.
Grab 5
The stronger increases in July compared to pre-pandemic were in furnishings and household equipment, clothing and footwear, and recreation and culture.
Grab 6
In July, all states and territories saw increases in household spending compared to July 2021. The strongest increases were in New South Wales and South Australia, both of which experienced Delta wave lockdowns this time last year.
Grab 7
Compared to July 2019, which was pre-pandemic, all states and territories have seen increases in total household spending. The strongest increases were in Queensland, South Australia, and Tasmania
Media notes
- The indicator is produced using aggregated and de-identified card and bank transactions from several banking and financial institutions.
- The indicator includes 9 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 through the year (e.g. July 2022 compared to July 2021) comparisons.
- Significant events such as COVID-19 can lead to very strong through the year 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.
- 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).
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