2025.09.0401:57:29UTC+00Australia Household Spending Growth Accelerates

Household expenditure in Australia increased by 0.5% in July 2025 compared to the previous month, up from a revised 0.3% in June, signaling the third consecutive monthly rise. This growth was primarily driven by higher spending on miscellaneous goods and services, which increased by 1.5% compared to 0.5% in June. Additionally, there was a resurgence in spending on health services (up 1.8% from a decrease of 0.1%), transportation (up 1.5% from a decline of 0.7%), and hospitality (up 1.4% from a decrease of 0.5%). Conversely, spending slowed in the recreation sector, with a modest increase of 0.2% compared to 0.9%, and there were declines across critical categories such as food (down 0.1% from an increase of 1.2%), alcohol (down 1.9% from a previous decline of 2.6%), clothing (down 1.2% from a rise of 1.4%), and furnishings (down 1.4% from an increase of 2.0%). Regionally, spending rose in Victoria (0.6%), Queensland (0.9%), South Australia (0.9%), Western Australia (1.6%), Tasmania (1.0%), the Northern Territory (2.2%), and the Australian Capital Territory (0.1%), while New South Wales experienced a decline of 0.3%. On an annual basis, household spending grew by 5.1%, marking the strongest growth since November 2023 and an acceleration from June’s revised 4.6%.