Data via Commonwealth Bank of Australia, one of Australia’s largest four banks. The CommBank Household Spending Insights (HSI) index rose by 0.8% in October, partially offsetting a -0.9% decline in September.
- Spending Categories: Ten out of twelve categories showed growth, with notable increases in:
- Household goods: +2.5%, driven by online marketplaces, hardware, and discount stores.
- Recreation: +1.6%, led by ticketing agencies for major events.
- Other categories: Communications & digital, Hospitality, Health, and Household services, all up by 0.9%–1.1%.
- Declines: Education (-1.3%) and Utilities (-3.4%) spending fell, the latter due to local government charges and electricity costs.
Annual spending growth rose to 4.9% in October, with Health (+10.6%), Recreation (+10.5%), and Communications & digital (+8.4%) leading the way.
- Weak Sectors: Utilities and Transport spending saw annual declines, due to rebates and lower petrol prices.
The report noted that Household spending was volatile in the third quarter, averaging just 0.3% monthly growth.
- Higher disposable incomes and lower utility/petrol prices likely influenced recent spending; however, a significant rise in spending is not expected until the RBA reduces interest rates, projected for February 2025.
From the report: