02.10.202501:53:58UTC+00Australia Personal Spending Growth at 4-Month Low

In August 2025, household spending in Australia experienced a modest increase of 0.1% month-over-month, slowing from a revised growth of 0.4% observed in the previous month. This represents the most sluggish rise since April. Expenditure growth decelerated in several sectors, with transport costs increasing by 0.8% compared to 1.5% in July, and spending in hotels, cafes, and restaurants rising by 0.3%, down from 1.4%. Additionally, spending on miscellaneous goods and services rose by 0.8%, also a decrease from the previous month's 1.5%. Healthcare expenses remained unchanged following a 1.8% increase, while reductions continued in categories such as alcoholic beverages, which fell by 0.9%, furnishings, which declined by 0.1% compared to a 1.8% drop in July, and recreational activities, which decreased by 0.9%, compared to a 0.4% reduction previously. Conversely, food spending increased slightly by 0.1% after a decline in July. Looking at regional data, Victoria (0.4%), South Australia (0.5%), Western Australia (0.3%), Tasmania (0.6%), and the Australian Capital Territory (ACT) (2.9%) registered gains in household spending. However, declines were noted in New South Wales (-0.2%), Queensland (-0.3%), and the Northern Territory (-1.2%). On a year-over-year basis, household spending rose by 5.0%, slightly down from July's 5.3%, which was the fastest annual growth rate since November 2023.