Household spending was up 1.8% compared to June 2022, the smallest growth in household spending since February 2021, fresh ABS figures showed.
“Spending on discretionary goods and services was down for the third straight month, falling 0.7% over the year, as households adjust to cost-of-living pressures,” said Ben Dorber, ABS head of business indicators. “Non-discretionary spending rose 4.2%, however the growth rate has been slowing since January, when it reached 21%.”
Goods spending fell 1.2%, its largest decline since July 2021, while spending on services increased 4.6%.
Driving the overall growth in household spending was miscellaneous goods and services, which was up +8.4%. This includes spending on childcare, legal services, and personal care. Delivering the next largest spending growth rates in June were health (+6.2%) and food (+5%).
Most states and territories saw increased household spending in June compared to the same period the prior year, with only the Northern Territory seeing a fall in spending over the same period.
South Australia saw the largest increase in spending, at +3.7%, led by rises for alcoholic beverages and tobacco (+11.2%) and miscellaneous goods and services (+9.7%).
All states and territories saw spending growth rates ease this month compared to last month, with the ACT posting the largest slowdown in spending compared to the same time last year, with growth falling from 4% in May to 1.3% in June, ABS reported.
Here’s where to access the Monthly Household Spending Indicator, June 2023.
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