Monthly Household Spending Indicator

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Experimental indicator of household spending using bank transactions data

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Reference period
January 2024
Released
7/03/2024
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Key statistics

  • Household spending increased 3.0% through the year on a current price, calendar adjusted basis.
  • Through the year, household spending increased for both services (+4.9%) and goods (+1.1%).
  • Through the year, household spending increased for both non-discretionary (+5.6%) and discretionary (+0.2%).

Future improvements to the Monthly Household Spending Indicator

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 see Future development below or visit the Future cessation of the Retail Business Survey and Retail Trade Publication webpage.

Suspension of Alcoholic beverages and tobacco series

In this release, data for the Alcoholic beverages and tobacco category has not been published for the most recent month. This category is subject to significant revisions after the spending indicator is benchmarked to Household Final Consumption Expenditure (HFCE).

The ABS is continuing to assess and refine the methodologies for the Alcoholic beverages and tobacco series in both the HFCE and spending indicator series. The data will be available in the Monthly Household Spending Indicator later in 2024 as part of the future improvements (see above).

Index reference period January 2019 = 100.0

Indicator estimates are produced in current price original and current price calendar adjusted terms. Calendar adjusted estimates account for trading day impacts and length of month. As the indicator time series lengthens, seasonally adjusted estimates will become available. Until such time, it is advised to focus on the through the year movements. Through the year movements measure change in the current month compared to the same month in the previous year. 

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.

Through the year spending

Through the year household spending increased for six spending categories. The largest increases were in:

  • transport (+9.4%)
  • recreation and culture (+6.3%)
  • health (+5.3%).

Goods and services spending

Index reference period January 2019 = 100.0

Through the year, household spending on:

  • services rose 4.9%, driven by increased spending on transport and health.
  • goods rose 1.1% driven by increased spending on food and goods for recreation and culture.

Discretionary and non-discretionary spending

Index reference period January 2019 = 100.0

Through the year: 

  • non-discretionary spending rose 5.6%, driven by increased spending on transport, food and health.
  • discretionary spending rose 0.2%, as increased spending on recreation and culture offset a fall in spending on furnishings and household equipment.

State and territory spending

Household spending increased through the year for all eight states and territories. The strongest increases were in:

  • Australian Capital Territory (+6.0%)
  • Western Australia (+5.6%)
  • Queensland (+4.3%).

In the Australian Capital Territory, the strongest household spending categories through the year were:

  • health (+8.7%)
  • food (+8.6%)
  • clothing and footwear (+8.5%).

In Western Australia, the strongest household spending categories through the year were:

  • transport (+11.3%)
  • recreation and culture (+9.2%)
  • health (+7.4%).

In Queensland, the strongest household spending categories through the year were:

  • recreation and culture (+9.8%)
  • transport (+7.8%)
  • health (+6.7%).
State household spending through the year by category, current price, calendar adjusted (%)
 NSWVic.QldSAWATas.NTACT
Food4.62.75.33.56.22.614.88.6
Clothing and footwear1.8-2.51.01.70.32.00.08.5
Furnishings and household equipment-3.2-3.01.70.6-1.611.5-12.82.2
Health3.44.76.78.47.43.60.08.7
Transport8.410.97.812.311.35.13.38.1
Recreation and culture3.06.09.87.79.28.39.77.8
Hotels, cafes and restaurants-0.55.64.95.35.43.77.56.0
Miscellaneous goods and services-6.1-6.3-4.5-4.33.1-3.9-3.6-0.8
Total1.32.84.34.05.62.53.76.0
State household spending through the year by goods/services, current price, calendar adjusted (%)
 NSWVic.QldSAWATas.NTACT
Goods0.3-0.72.90.73.31.86.55.0
Services2.26.35.57.17.73.02.16.4
State household discretionary/non-discretionary spending, through the year, current price, calendar adjusted (%)
 NSWVic.QldSAWATas.NTACT
Discretionary-1.6-0.92.51.02.70.70.34.6
Non Discretionary4.06.15.96.67.84.06.96.9

Data downloads

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Monthly Household Spending Indicator Data Cubes

Includes index numbers, monthly percentage changes and through the year percentage changes. 

Data files

Data Explorer datasets

Caution: Data in Data Explorer is currently released after the 11:30am release on the ABS website. Please check the reference period when using Data Explorer.

For more information about Data Explorer, see the Data Explorer user guide.

Monthly Household Spending Indicator - Monthly percentage changes and indexes, January 2019 onward

Future development

Improvements to the Monthly Household Spending Indicator (MHSI) will mean the ABS can stop the Retail Trade publication after the June 2025 reference period, which will give users a more comprehensive view of household consumption and remove the need for businesses to respond to the Retail Business Survey.

The ABS has been working with key data users to understand how the MHSI can be further enhanced to meet their needs. Feedback from users has identified the following enhancements.

  • Moving to a ‘household consumption’ concept bringing MHSI closer to its predominant use. 
  • Seasonally Adjusted Estimates. 
  • Current Price Estimates. 
  • Quarterly Chain Volume Measures. 

Once in place, these enhancements will ensure the ABS is on track to provide high quality, timely estimates of household spending across a variety of consumption categories. The enhancements are planned for delivery in 2024. Between now and mid-2025 when Retail Trade ceases, the ABS will continue to work with partners and stakeholders to improve the MHSI and provide users with suitable timely data to support their needs. 

More Information about this transition can be found on the Future cessation of the Retail Business Survey and Retail Trade Publication webpage or through contacting us at household.spending@abs.gov.au.

Revisions

Updates to quarterly benchmarks and to source data have resulted in revisions to the outputs this month.

Acknowledgement

The ABS would like to acknowledge the ongoing support of the participating banks that have enabled the ABS to produce these statistics.

Methodology

Scope

  • Payment for goods and services by Australian households.
  • Captures the point of payment for a good or service, regardless of ownership change, service delivery, or consumption.

Geography

Data is available for:

  • Australia Total
  • States and territories.

Source

Aggregated, de-identified banks transactions data provided to the ABS from participating banks. Source data includes debit and credit card transactions, but excludes other payment types such as cash and direct transfers.

Collection method

Participating banks send transactions data soon after the end of each calendar month. 

Concepts, sources and methods

Household spending is categorised according to COICOP Divisions. Outputs are produced for total household spending and nine categories. Data is benchmarked to quarterly household final consumption expenditure (HFCE) to adjust for undercoverage.

History of changes

Not applicable for this release.

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