Australian household spending rebounds 0.8% in July

Australian household spending increased 0.8 per cent in July, rebounding from a 0.5 per cent decline in June and a 0.7 per cent rise in May, according to the Australian Bureau of Statistics (ABS) report released on Wednesday.

The rise was driven by increased spending on services such as transport and health services. In contrast, goods spending remained relatively subdued, rising only 0.1 per cent in July.

Non-discretionary spending rose by 4.3 per cent in the 12 months to July, outpacing the 1.3 per cent increase in discretionary spending, driven by higher cost-of-living pressures.

Household spending increased in most states and territories compared to the previous year in calendar adjusted terms.

Western Australia (+6.4 per cent), Queensland (+3.9 per cent), and the Northern Territory (+3.2 per cent) experienced the largest percentage increases, while New South Wales saw a slight decline of 0.2 per cent.

Attribution: Australian Bureau of Statistics report

Subediting: M. S. Salama