Household spending rises 0.3% in January: ABS
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The news: Australian household spending saw a 0.3% increase in January, according to figures released by the Australian Bureau of Statistics.
Meanwhile, the seasonally adjusted international trade balance on goods decreased by $742 million in January.
The context: The modest growth in household spending follows a 0.5% fall in December, and a 1% rise in November.
Household spending over the year remains high, with a 4.6% increase compared to the prior corresponding period. Tasmania recorded the largest monthly rise.
According to ABS, services were up 1%, which drove the overall rise in spending on the back of digital streaming, travel agency and tour services. Dental services also contributed to the monthly growth.
This was partly offset by a fall in spending on goods, down 0.3% weighed by the reduced spending in motor vehicles and recreational products.
Elsewhere, Australian exports were 0.9% lower driven by ‘other rural’, while imports saw a 0.8% rise supported by ‘non monetary gold’.
What they said: “While this is a shallower increase than previous years, suggesting that some consumers are still holding back on spending, the 4.6% year-on-year growth continues to reflect strong economic activity,” Shopify managing director Shaun Broughton said.
“Following Australia’s GDP growth this week, this will do little to lower expectations of the RBA increasing interest rates in March and more belt-tightening in May’s Budget,” he added.
