Household spending rises for third month in a row

Household spending rose 1.1 per cent in July 2026, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

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

Tom Lay, ABS head of business statistics, said: “This was the third consecutive monthly rise in household spending, led by Recreation and culture, Food, Hotels, cafes and restaurants, and Health.” 

“In nominal terms, household spending was 7.0 per cent higher than the same time last year, reaching the highest annual growth since June 2023.”

Recreation and culture spending rose 1.5 per cent in July.

“Spending on gambling activities, major sporting events and cinema attendance all contributed to the rise this month,” Mr Lay said.

Price rises were a notable factor for the 1.0 per cent rise in food spending, as well as a 1.1 per cent rise in Hotels, cafes and restaurants. Within Hotels, cafes and restaurants, the rise was led by catering services, including restaurants, cafes and takeaway.

Health spending also contributed to the rise, up 1.2 per cent.

“Households spent more on pharmaceuticals, general healthcare services, eye care, and dental treatment in July,” Mr Lay said.

Nominal fuel spending rose 2.2 per cent as fuel excise duty was increased by 16 cents per litre from 1 July – a partial removal of the cuts resulting from the Federal Government’s Fuel Tax Relief measures introduced on 1 April – which resulted in higher prices.

Experimental data produced by the ABS suggests that the volume of fuel spending fell by 4.7% per cent in July. This follows a 7.9% per cent increase in June.