Household spending up 1.3% in May

Household spending rose 1.3 per cent in May 2026, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This follows a fall of 1.1 per cent in April and a rise of 1.7 per cent in March. 

Tom Lay, ABS head of business statistics, said: “The rise in household spending largely reversed what was seen in April, reflecting a lift across all nine spending categories.”

“Annual household spending increased by 5.5 per cent compared to May 2025, up from the 5.1 per cent annual rise in April.”

Transport spending rose by 1.4 per cent in May after falling 4.7 per cent in April. This was mostly due to travel related refunds returning to normal after being significantly elevated in April due to flight cancellations associated with the Middle East conflict.

“Excluding air transport spending, which was impacted by travel related refunds, total household spending would have risen 0.6 per cent.” Mr Lay said.

Fuel spending remained elevated but is gradually easing from the peak observed in March, as the impact of the halved fuel excise duty from 1 April continues to pass through to households. 

Experimental data produced by the ABS suggests that the volume of fuel spending decreased by 0.4% in May, following a 2.1% rise in April.

There were strong rises in household spending across discretionary categories including Hotels, cafes and restaurants (up 1.9 per cent) and Clothing and footwear (up 2.7 per cent). 

“The rise in spending at Hotels, cafes and restaurants was driven primarily by catering services, including restaurant meals, takeaway and dining out,” Mr Lay said.

“Demand was also likely supported by sporting and cultural events across Australia, alongside higher catering and hospitality prices.”

Clothing and footwear spending rose in May following an April fall, driven by discounting across mid-season clearance, stocktake and early end-of-financial year sales events offered by retailers.

A 1.1 per cent rise in food spending also contributed to the May result, reversing an April fall due to higher grocery prices.