The latest release of the Monthly Household Spending Indicator for June 2023 highlights notable trends in Australian household spending patterns. The experimental indicator, based on bank transactions data, provides insights into how households allocate their funds across various categories. Here are the key takeaways from the report:
- Positive Growth: Household spending exhibited a 1.8% increase over the year, measured in current price and calendar-adjusted terms. This growth was primarily driven by increased spending on services, which saw a surge of 4.6%. However, spending on goods experienced a decline of 1.2% over the same period.
- Non-Discretionary vs. Discretionary Spending: The report also examined spending patterns in terms of necessity. Non-discretionary spending, including essentials like food, health, and catering services, rose by 4.2% year-on-year. In contrast, discretionary spending, which encompasses non-essential items like clothing, recreation, and household goods, dropped by 0.7%.
- Category Insights: Household spending surged for six out of nine spending categories over the year. The categories with the most significant increases were miscellaneous goods and services (8.4%), health (6.2%), and food (5.0%).
- Goods and Services Spending: The data reveals a mixed trend in goods and services spending. Spending on services increased by 4.6%, attributed to higher expenditures on miscellaneous goods and services, health, and hospitality establishments. In contrast, spending on goods saw a decrease of 1.2%, mainly due to drops in clothing and footwear, recreation and culture goods, and furniture and household items.
- State Variances: Geographically, household spending grew across most Australian states and territories except for the Northern Territory. Among the notable performers were South Australia (3.7%), Western Australia (2.9%), and New South Wales (2.1%).
- Category Leaders by State: Different categories led the spending growth in various states. For instance, in South Australia, alcoholic beverages and tobacco (11.2%), miscellaneous goods and services (9.7%), and health (8.1%) were the frontrunners. In Western Australia, health (11.4%), miscellaneous goods and services (5.2%), and transportation (4.3%) showed the strongest growth. In New South Wales, miscellaneous goods and services (10.4%), health (7.5%), and food (6.5%) were the top performers.
https://www.abs.gov.au//statistics/economy/finance/monthly-household-spending-indicator/jun-2023