Household spending up 0.8% in June

Household spending rose 0.8 per cent in June 2026, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This follows a rise of 1.2 per cent in May and a fall of 1.0 per cent in April. 

Tom Lay, ABS head of business statistics, said: “The 0.8 per cent rise in June was driven by discretionary spending rising for the second month in a row at 1.2 per cent, thanks to continued strength in Transport and Recreation and culture.”

“New Vehicle sales were the standout within Transport this month, driving a 3.0 per cent rise,” Mr Lay said.

“Electric vehicle sales increased significantly over the year and have continued that trend in June, accounting for a growing share of overall new vehicles sales as households adjust their spending behaviour in response to rising fuel prices.”

Air travel spending was the second largest contributor to the strength in Transport spending, as it returned to levels seen before the travel disruptions caused by the Middle East conflict that began in March 2026. 

Fuel spending has eased from the peak observed in March, as world oil prices fell and the reduction in the fuel excise duty from 1 April until 30 June continues to pass through to households. 

Experimental data produced by the ABS suggests that the volume of fuel spending increased by 7.8 per cent in June, reflecting a 10.9 per cent decrease in prices. This follows a 0.2 per cent increase in May.

“The 1.4 per cent rise in Recreation and culture came from a few categories in June, with households spending more on electronic goods, performing arts and other live entertainment, and gambling activity likely supported by major sporting events,” Mr Lay said.

Some of the rise in spending on performing arts and live entertainment reflect advanced purchases of tickets for future performances. In the household spending indicator this activity is recorded as spending at the point of payment rather than when the service is consumed. 

The household spending volumes indicator rose 0.7 per cent in the June quarter 2026.

When the prices of goods and services change, the quarterly volumes indicator can give more insights into household spending trends as a measure of the amount of goods and services that were purchased. 

“Household spending volumes rose for the third quarter in a row in the June quarter, driven by discretionary categories such as alcoholic beverages and tobacco, recreation and culture, furnishing and household equipment, and hotels, cafes and restaurants,” Mr Lay said.

Household spending volumes rose 2.4 per cent compared to the June 2025 quarter. While growth remained solid, it was slightly lower than the 2.7 per cent annual increase recorded in the March 2026 quarter.