Consumer spending rose 0.4% in February: NAB

The news: Consumer spending rose 0.4% in February, representing solid first-quarter growth, according to the latest consumer spending trends report from NAB.

The context: The report showed goods spending rose 0.4%, with gains across most categories including food outweighing a 3% decline in fuel spending. Services spending increased 0.5%, led by growth in the recreational and services sector.

However, the data does not fully reflect recent shifts in consumer behaviour following the escalation of the Middle East conflict and expectations of an upcoming rate hike from the RBA.

On a year-on-year basis, services categories including utilities, telecoms and recreational drove growth in consumer spending. Goods spending grew more moderately, with personal goods as the main contributor.