The new ABS data shows household spending across Australia has risen 18.4% in July 2022, compared to the same time last year. 

Jacqui Vitas, head of macroeconomic statistics at the ABS, said July saw the 17th consecutive month of through-the-year increases in total household spending, with increases in all spending categories. 

"There were particularly strong increases in spending on clothing and footwear (up 45.0%), transport (up 35.4%) and hotels, cafes and restaurants (up 34.9%)," Ms Vitas said.

"These increases were coming off the back of the COVID-19 Delta lockdown impacts that we saw last year, when there was reduced spending in these spending categories due to lockdowns."

Several spending categories weren't impacted by 2021 lockdowns, such as food (up 2.0%), alcoholic beverages and tobacco (up 1.2%) and furnishings and household equipment (up 0.8%), and as a result saw only moderate rises. 

CBA head of Australian economics Gareth Aird said there is generally a three-month lag time between interest rate rises and when consumers start to feel the impacts.

"(This) largely explains why the official spending data has remained strong but consumer sentiment sits at levels associated with a recession," Mr Aird said.

How does spending compare to pre-pandemic times?

The ABS estimates that total household spending in July 2019 was 11.9% higher in current price, with the strongest increases over this period being furnishings and household equipment (up 22.4%), clothing and footwear (up 22.3%) and recreation and culture (up 21.6%).

Household spending in July 2022 rose across all states and territories, compared to the same time last year.

The highest increases in spending throughout the year were recorded across New South Wales (up 33.2%) and South Australia (up 23.3%), both states were experiencing lockdowns this time last year due to the Delta wave. 

All states showed an increase in household spending compared to pre-pandemic July 2019 estimates, with Queensland showing the strongest rise (up 19.1%), followed by South Australia (up 16.9%) and Tasmania (up 16.4%).


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Maximiser (<$100k)

    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money

    Saver Account (<$250k)

    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money
    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties

    Savings Account (Amounts < $250k)

    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Maximum Age - 24

    Goal Saver

    • Maximum Age - 24
    02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    No monthly fees
    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    No monthly fees

    Save Account

    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings

    Bonus Saver Account (Amounts < $250k)

    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings
    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    For customers aged 14-35 years
    For customers aged 14-35 years

    Future Saver Account ( < $50k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Boost Saver

        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of April 15, 2024. View disclaimer.

        Image by Mikhail Nilov via Pexels.