Australia Household Spending Rises for 2nd Month

Household spending in Australia grew by 0.5% month-over-month in June 2025, following a marginally revised 1.0% increase in May, marking the second consecutive month of growth after interest rate cuts by the central bank in May. Expenditures rose across several categories, including clothing and footwear (1.6% vs 4.5%), furnishings (2.0% vs 1.0%), recreation (1.0% vs 0.6%), miscellaneous goods and services (0.6% vs 1.4%), and food (1.5% vs -0.1%). In contrast, spending declined for alcoholic beverages (-2.4% vs -2.0%), hotels, cafes, and restaurants (-0.8% vs 0.9%), and health (-0.3% vs 1.0%). Regionally, expenditure increased in seven of the eight states and territories, including the Northern Territory (1.3%), New South Wales (1.1%), and Tasmania (0.8%). On an annual basis, personal expenditures climbed by 4.8% in June, marking the strongest yearly growth since January 2024, after an upwardly revised 4.4% rise in the previous month.