Australia Personal Spending Unexpectedly Declines

Household spending in Australia dropped 0.4% mom in December 2025, reversing a 1.0% growth in the previous month and missing market estimates of a 0.2% increase. The latest result marked the first monthly contraction since March 2024, reflecting the impact of cost pressures and elevated interest rates. Expenditures fell for food (-0.4% vs 0.6% in November), clothing (-2.4% vs 2.5%), furnishings (-1.7% vs 2.4%), health (-1.3% vs 0.4%), recreation (-0.5% vs 2.0%), and miscellaneous items (-0.9% vs 0.2%). In contrast, spending rose for alcoholic drinks (2.0% vs -1.8%), transport (0.6% vs 0.6%), and hotels & restaurants (0.5% vs 1.2%). Regionally, spending shrank in New South Wales (-0.6%), Victoria (-1.0%), Western Australia (-0.3%), but increased in Queensland (0.2%), South Australia (0.3%), the Northern Territory (2.9%), and Tasmania (0.1%). On an annual basis, household spending grew 5.0%, the softest in four months, after a 6.0% gain in November.

Household spending in Australia rose 1.0% mom in November 2025, slowing from a marginally revised 1.4% growth in the prior month, which had marked the strongest gain in nearly two years. The slowdown reflected cautious consumer behavior, as households felt the impact of elevated interest rates. Expenditures moderated for food (0.7% vs 1.1% in October), furnishings (2.2% vs 3.0%), hotels & restaurants (1.2% vs 2.2%), and miscellaneous items (0.6% vs 1.6%). Spending on alcoholic drinks fell 1.8%, after rising 1.9% previously. In contrast, expenditures accelerated for health (0.5% vs 0.4%), transport (1.0% vs 0.4%), and recreation (1.7% vs 1.3%). Regionally, spending eased in New South Wales (0.8%), Victoria (1.0%), Queensland (1.0%), South Australia (0.8%), and the Northern Territory (0.5%), but quickened in Western Australia (1.7%). On an annual basis, household spending grew 6.3%, accelerating from a 5.7% gain in October and marking the fastest rise since September 2023.

Household spending in Australia grew 1.3% mom in October 2025, picking up from an upwardly revised 0.3% gain in the prior month and marking the strongest pace since January 2024 amid improving consumer mood and early holiday-related purchases. Expenditures rebounded for alcoholic beverages (1.8% vs -0.6% in September), transport (0.3% vs -0.1%), and hotels & restaurants (2.2% vs -0.3%). Additionally, spending growth accelerated for food (0.9% vs. 0.6%), furnishings (3.0% vs. 0.7%), and miscellaneous items (1.6% vs. a flat reading). Meanwhile, spending slowed for health (0.4% vs 0.6%) and recreation (1.0% vs 1.1%). Geographically, New South Wales (1.6%), Queensland (1.5%), the Australian Capital Territory (-2.4%), Victoria (1.1%), Western Australia (1.1%), and South Australia (0.9%) posted gains, while spending edged down in Tasmania (-0.1%). On an annual basis, household spending rose 5.6%, faster than September’s 5.1% and pointing to the steepest growth since September 2023.