Key facts
- Australian household spending increased by 1.3% in May.
- Australian household spending decreased by 1.1% in April.
- Increased spending in May was driven by transport, clothing, and dining out.
- Consumer demand is holding up despite higher borrowing costs.
- Consumer demand is holding up despite higher fuel prices.
Australian household spending experienced a notable rebound in May, with a 1.3% increase that reversed the 1.1% drop observed in April. This recovery in consumer activity was largely propelled by increased spending across several key sectors, including transport, clothing, and dining out. The resilience of consumer demand, as indicated by this spending data, is occurring despite ongoing economic pressures such as higher borrowing costs and elevated fuel prices. The May figures suggest that households are continuing to spend, demonstrating a capacity to absorb these economic headwinds.