The ABS Monthly Household Spending Index revealed household spending increased 10.2% in June, compared to the same period last year.
Household spending increased in all nine spending categories with the largest increases recorded in transport 22.7%; hotels, cafes and restaurants, 17.1%; and clothing and footwear, 16.3%.
Transport spending is up 8.2% from the previous month driven by high petrol prices and a large demand for air travel.
ABS notes all states and territories recorded increases in household spending compared to June 2021, however Queensland, Victoria, and Tasmania led the charge with increases of 12.4%, 11.8%, and 10.8% respectively.
Jacqui Vitas, head of macroeconomic statistics at the ABS, said this was the 16th consecutive month of through-the-year increases in total household spending.
“This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to COVID-19 were experienced across the country,” Ms Vitas said.
“Spending categories most impacted from COVID-19 responses (transport, hotels, cafes and restaurants, and clothing and footwear) have now returned to pre-pandemic levels.”
While most spending categories saw a significant growth, health (+0.8%), alcoholic beverages and tobacco (+0.9%), and food (+1.8%) only recorded moderate rises.
Household spending continues to hold up in August: ANZ
According to ANZ research, ANZ-observed spending (excluding petrol) was steady in early August, following a similar trajectory to previous years.
ANZ economists Adelaide Timbrell and Madeline Dunk said most key categories of discretionary spending are “resilient despite recession-level consumer confidence and falling real wages.”
Discretionary spending categories such as furniture spending was up 22% year over year, while weekly travel agent spending rose to 70%.
“We do not expect any immediate cliff in household spending due to interest rate rises, though will be watching the data for signs of weakness,” Ms Timbrell and Ms Dunk said.
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