Rise in household spending eases
Household spending continued to rise in October 2022, increasing by 20.7 per cent compared to the same time last year, according to figures released today by the Australian Bureau of Statistics (ABS).
Jacqui Vitas, ABS head of macroeconomic statistics, said: “October 2022 saw the 20th consecutive month of increased through-the-year total household spending, with increases seen in all spending categories.
“The through-the-year rise was more moderated than previous months, which coincides with less COVID-19 Delta lockdown impacts this time last year. Spending in Transport (up 42.3 per cent), Hotels, cafes and restaurants (up 39.9 per cent), and Clothing and footwear (up 32.2 per cent) all saw strong increases but have slowed in comparison to the previous two months.”
In contrast, spending categories not as negatively impacted by the lockdowns - Food (up 4.5 per cent) and Furnishings and household equipment (up 1.8 per cent) - saw only small rises compared with October 2021.
This line graph shows the through the year percentage changes in household spending in current price, calendar adjusted terms.
State and Territory results
All states and territories saw increased household spending in October 2022 when compared to October 2021. The Australian Capital Territory (up 36.6 per cent) and Victoria (up 32.8 per cent) recorded the highest through-the-year increases in spending. These jurisdictions experienced the strictest COVID-19 Delta lockdowns at the same time last year. The strong through-the-year rises moderated in New South Wales (rise of 38.2 per cent in September 2022 compared to 16.5 per cent in October 2022) as restrictions started to ease in October 2021.
This bar graph shows the change in total household spending for all the states and territories when comparing the October 2022 to the October 2021 estimates.
Okay. So, I'm Jackie Vitas and I'm the head of macroeconomic statistics at the Australian Bureau of Statistics.
So today what we're seeing is that in October this year, compared to October last year, household spending has increased 20.7% and that's the 20th consecutive month of household spending increases, and what we've seen is increases in all spending categories.
So, the most notable ones [categories] were Transport, so that increased 42.3%, followed by Hotels, cafes and restaurants and Clothing and footwear. But what we have to note is that, despite these strong increases, what we're actually seeing is some trending down in terms of household spending for these categories. We saw smallest increases in Furnishing and household equipment and also in Food.
If we compare October this year to October 2019, which was pre-pandemic, household spending is 18.2% higher. And what we were seeing was the strongest increases were in Recreation and culture, Clothing and footwear and Alcoholic beverages and tobacco.
October this year, compared to October last year, all states and territories saw increases in household spending. Now the highest increases were in ACT and Victoria, but we have to remember the delta lockdowns that those states were experiencing, and territories were experiencing last year. New South Wales was starting to have some of the delta restrictions eased October last year, so their spending has actually softened a little bit compared to last year.
The indicator is produced using aggregated and de-identified card and bank transactions from banking and financial institutions.
The indicator includes nine of the 13 key divisions classified, according to the Classification of Individual Consumption by Purpose (COICOP).
The indicator is produced in current price original and current price calendar adjusted terms only.
Until the indicator is seasonally adjusted, it is advised to focus on through-the-year comparisons (e.g. October 2022 compared to October 2021).
Significant events such as COVID-19 can lead to very strong through-the-year rises. Care should be given when comparing periods with these events.
Care should be given when comparing Household Spending Indicator estimates with other ABS products.
When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
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