Strong growth in services lifts household spending

Household spending rose 0.3 per cent in January 2026, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This follows a fall of 0.5 per cent in December and a rise of 1.0 per cent in November. 

Household spending over the year remains high in nominal terms, up 4.6 per cent compared to January 2025.

Tom Lay, ABS head of business statistics, said: ‘Household spending returned to growth in January, rising in five of the nine spending categories.’

Spending on services drove the rise, up 1.0 per cent driven by Other services including Digital streaming services and Travel agency and tour services. Health services also contributed with higher spending on dental services. 

This was partly offset by a fall in spending on goods, down 0.3 per cent, driven by drops in Purchase of motor vehicles and Recreation and Culture goods. 

‘Essential spending rose 0.8 per cent and was driven by health services and spending on motor vehicle repairs and maintenance,’ Mr Lay said. 

‘Discretionary spending was up 0.1 per cent this month, driven by spending on Air transport, Personal effects and Recreational and cultural services.’

Household spending rose in five out of the eight states and territories in January. Tasmania recorded the largest rise in percentage terms, while New South Wales saw the biggest increase in dollar terms.

Tasmania (+0.6 per cent) recorded the largest monthly rise, followed by New South Wales and Victoria (both +0.5 per cent). The Northern Territory recorded the largest monthly fall, down 2.3 per cent.