Australian Household Spending Slows Down, Services Spending at Lowest Growth Rate in a Year

Australia, Police

Article: Household spending in Australia has continued to rise, but at a slower pace compared to earlier this year, as revealed by the latest figures from the Australian Bureau of Statistics (ABS).

According to ABS head of business statistics, Robert Ewing, household spending growth in March was lower compared to the previous months, with cost of living pressures leading to a focus on non-discretionary spending while discretionary spending growth stalled.

The data also highlights a significant slowdown in spending on services, which experienced a growth rate of 1.

March, the lowest in over a year.

This decline in services spending can be attributed to a decrease in transport-related expenses, which rose by only 6.

March compared to 12.

February.

Additionally, the timing of Easter played a role in the spending patterns observed.

As Easter fell mostly in March in 2024, households spent more on goods like food in the lead up to the long weekend, while spending on services like health decreased.

Despite the slowdown, all states and territories in Australia recorded an increase in household spending compared to the previous year.

However, the growth rates were lower in March when compared to February across all regions.

South Australia and Western Australia saw the highest rises in spending at 5.

Northern Territory had the smallest annual growth rate of 0.

March.

These figures reflect the ongoing challenges faced by Australian households in managing their expenses amidst rising costs of living.

As the country continues to navigate economic fluctuations, monitoring household spending trends remains crucial for policymakers and economists alike.

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