Household spending rose 6 per cent in April year-on-year, not even keeping up with the artificial growth caused by rising inflation.
According to figures released today by the Australian Bureau of Statistics, growth has slowed as consumers further tighten their belts, and begin to shop in a more discerning manner.
“From a peak of 29.1 per cent in August 2022, this month’s 6.0 per cent growth has followed a downward pattern from an 11.9 per cent rise in February and an 8.4 per cent rise in March,” Kate Lamb, ABS head of business indicators.
“This is mainly due to lower growth in spending on consumer services, like holiday travel and eating out, which continues to normalise following the COVID-19 pandemic.”
Transport (+15.5 per cent) and Hotels, cafes and restaurants (+13.4 per cent) recorded the largest percentage increases across spending categories – a long way from August 2022 peaks of 63.5 per cent and 69.6 per cent respectively.
“Spending growth for goods has also slowed but to a lesser extent, as inflation continues to increase spending on food,” Lamb said.