Household spending lifts in August as Australians splash cash on airlines, accommodation: ABS

Household spending lifted for a fourth-consecutive month in August, boosted by Australians splashing cash on holidays.
The 0.1 per cent lift in August followed a rise of 0.4 per cent in July and 0.5 per cent in June, according to the Australian Bureau of Statistics on Thursday.
“The small rise in August was the fourth increase in a row and spending has risen in 10 of the last 12 months,” ABS head of business statistics Lauren Binns said.
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By continuing you agree to our Terms and Privacy Policy.On an annual basis, household spending increased by 5 per cent, which was slightly below market expectations of 5.2 per cent and below the 5.3 per cent rise in July.
Ms Binns said household spent more on booking airline travel and accommodation services in August. This contributed to a 0.5 per cent rise for services spending.
“In contrast, goods spending fell 0.2 per cent, Ms Binns said.
The Reserve Bank of Australia on Tuesday flagged its concern household spending was picking up faster than expected.
Oxford Economics Australia head of economic research and global trade Harry Cruise said on Thursday if that continued, the extra spending could keep upward pressure on prices and slow the pace of rate cuts.

“It’s hard to tell how much of the recent lift in spending reflects temporary boosts — from heavy discounting and back-to-back public holidays — versus a genuine revival in households’ appetite to spend,” he said.
“With today’s data showing spending rose just 0.1 per cent month-on-month in August — the smallest rise since April and continuing a four-month run of diminishing gains — the RBA will take some comfort that the former has played an important role.”
Five of the nine spending categories rose in August. This was led by transport, which rose 0.8 per cent, and was driven by WA and the ACT. Miscellaneous goods and services also rose 0.8 per cent.
The biggest falls in spending were recorded in recreation and culture, as well as alcoholic beverages and tobacco, both down 0.9 per cent.
The ACT led the growth in spending, up 2.9 per cent, while the the Northern Territory posted the biggest fall, down 1.2 per cent. WA rose 0.3 per cent.
More to come.
Originally published on The Nightly