Household spending driven by transport: ABS
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The news: Household spending in February was 3.6% higher than a year ago, new Australian Bureau of Statistics (ABS) figures show.
The numbers: The rise in spending follows increases of 1.2% in December and 2.9% in January.
ABS said that spending on transport rose 12.3%, making the largest contribution of total spending growth, as automotive fuel prices increased 4.1%.
Spending on discretionary goods and services fell 0.2%, while non-discretionary spending rose 6.9%, highlighting the shift in consumer behaviour due to cost-of-living pressures.
Compared to the same time last year, household spending rose in all states and territories, with the largest rises in South Australia (7.9%) and the ACT (7.6%). All states and territories also had higher spending growth rates than in January, with South Australia seeing the largest rise, up from 4% in January to 7.9% in February.
The context: ABS head of business statistics Robert Ewing noted that growth in household spending has risen from its low point in December 2023.
With transport leading spending growth in February, Ewing said that consumers are also spending more on transport services such as air travel, tours, and cruises compared to the same time last year.
The source: ABS media release
