Household spending recovers despite rising costs: ABS

The news: Australian households are continuing to spend more, but are holding back on non-essentials in the face of higher costs and interest rates, ABS data shows.

The numbers: Household spending was up 4.8% in August compared with the same month in 2022, led by a 17.1% increase in transport spending over the year, catalysed by higher petrol prices and holiday travel, ABS said. Non-discretionary spending rose 9.1%, while discretionary spending was flat.

The context: The figures indicated a recovery in spending in August, after the ABS reported household spending fell 0.7% year on year in July, the first such drop since early 2021.