Household spending slows further in June
Household spending was 1.8 per cent higher compared to June last year, according to figures released today by the Australian Bureau of Statistics (ABS).
Ben Dorber, ABS head of business indicators, said: “This was the smallest growth in household spending since February 2021.
“Spending on discretionary goods and services was down for the third straight month, falling 0.7 per cent over the year, as households adjust to cost of living pressures.
“Non-discretionary spending rose 4.2 per cent, however the growth rate has been slowing since January, when it reached 21.0 per cent.”
Goods spending saw its largest decline since July 2021 with a 1.2 per cent fall, while spending on Services rose 4.6 per cent.
The overall growth in household spending compared to June last year was driven by Miscellaneous goods and services (+8.4 per cent), which includes spending on child care, legal services and personal care. Health (+6.2 per cent) and Food (+5.0 per cent) had the next largest spending growth rates in June.
Household spending increased in most states and territories in June 2023 compared to June 2022, with only the Northern Territory seeing a fall in spending over this period.
South Australia recorded the largest increase in spending (+3.7 per cent), led by rises for Alcoholic beverages and tobacco (+11.2 per cent) and Miscellaneous goods and services (+9.7 per cent) compared to June 2022.
Spending growth rates were lower in all states and territories this month compared to last month. The ACT had the largest slow-down in spending compared to the same time last year, with growth dropping from 4.0 per cent in May to 1.3 per cent in June.
Media notes
- 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).
- All modes of transport are classified as non-discretionary, including bus, train and air fares, and the purchase and operation of motor vehicles.
- 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 comparisons (e.g. June 2023 compared to June 2022).
- 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. 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.
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