Australian household spending remained stable in July, with declines in hospitality and utilities offset by increases in household goods and recreation.
Australian household spending remained unchanged in July as consumers continued to seek discounts amidst rising cost pressures, according to Commonwealth Bank's monthly index. Spending in the hospitality sector dropped 2.6%, with consumers reducing spending at cafes, pubs, wineries, and takeaway food outlets, but increasing expenditure on fast food and food delivery services. Spending on utilities also decreased by 1.3%, even before the government's electricity rebate scheme came into effect. However, spending on household goods rose by 1.3%, with consumers prioritising discounts at online marketplaces, discount department stores, and beauty stores. Recreational spending increased by 0.9% in July, partly driven by major sporting events. Mortgage holders experienced a 3.3% increase in spending, while renters saw a 0.3% rise.