Household spending rose by 3% over the past year, marking the highest annual growth since September 2023, according to the latest figures from ABS.
Robert Ewing (pictured above), ABS head of business statistics, highlighted the significant impact of essential goods and services on this trend, with non-discretionary spending climbing by 5.6%.
“Compared to January 2023, households are spending more on transport, food, and health,” Ewing said in a media release. “In contrast, discretionary spending rose just 0.2%, as spending on furnishings and household equipment fell 1.6%.”
The rise in household spending was uniformly seen across all Australian states and territories, with particularly significant increases in the Australian Capital Territory (6%) and Western Australia (5.6%). This growth was not only limited to these regions but indicated a broader national trend towards higher expenditure on essentials.
Notably, all regions except the Northern Territory recorded higher growth rates than the previous month, up to 6% in January from 2.8% the previous month, ABS reported.
For a more detailed report, check out Monthly Household Spending Indicator, January 2024.
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