Key facts
- Australian household spending increased by 1.3% in May.
- Spending rebounded after a 1.1% drop in April.
- Transport, clothing, and eating out were key contributors to the May spending increase.
- Household spending reached A$80.64 billion in May.
- Employment rose by 40,300 in May, with the unemployment rate falling to 4.4%.
Australian household spending rebounded in May, jumping 1.3% to A$80.64 billion, reversing a 1.1% decline in April. This increase, driven by higher spending on transport, clothing, and dining out, suggests consumer demand remains resilient despite elevated borrowing costs and fuel prices. The rebound exceeded analyst expectations, which had generally predicted a 0.5% rise. This follows recent data showing Australian employment rose by 40,300 in May, with the unemployment rate falling to 4.4%. However, job vacancies saw their first decline since mid-2022, falling 2.1% in the May quarter, with notable drops in the finance and accommodation sectors.