In brief
Australia’s household spending grew 0.6% in September, following a 0.1% fall in August, according to new ABS figures. Transport and health each rose 1.5%, driven by higher fuel prices and increased medical service use. The increase marks the fourth straight quarter of growth for Australian households.
Australian household spending rose 0.6 % in September, the Australian Bureau of Statistics (ABS) announced on November 4, after a 0.1 % decline in August, with gains across both essential and discretionary categories.
The 0.6 % jump followed a 0.1 % decline in August, and covered nine of the nine spending categories tracked by the bureau, including groceries, utilities, recreation and culture.
Drivers of the Increase
Tom Lay, head of business statistics at the ABS, said:
Transport spending rose on higher expenditure on fuel, vehicle repairs and maintenance, and domestic air travel as people traveled to attend major sporting events.
Fuel spending rose 5.4 % in September, reflecting higher global oil prices and the end of fuel excise relief on Aug. 3. However, experimental ABS data showed that the volume of fuel purchased fell 2.2 % during the month, following a 0.6 % decline in August.
Health spending increased due to higher expenditure on doctor visits, dental and optometric services, pharmaceuticals and toiletries, with late flu activity likely contributing to greater demand for medical consultations and medicines, Lay added.
Quarterly Growth Context
On a quarterly basis, household spending grew 0.7 % in the September quarter, marking the fourth consecutive quarter of growth, with seven of the nine spending categories recording increases. Lay said transport posted the strongest quarterly growth, rising 1.6 % and led by higher spending on air travel.