Household spending was unchanged at 0.0 per cent in August 2024 compared to the prior month, according to seasonally adjusted figures from the Australian Bureau of Statistics (ABS).
In trend terms, household spending fell 0.1 per cent in the same period.
Despite the flatlining of household spending overall, discretionary spending rose 0.2 per cent month-on-month, reportedly driven by increased spending on goods for recreation and culture, clothing and footwear and air passenger and sea transport.
Spending on clothing and footwear was up by 1.1 per cent in August, following a fall of 1.9 per cent in July and a 2.6 per cent rise in June.
Non-discretionary spending declined by 0.4 per cent, with higher spending reported on motoring goods and food.
“Growth in household spending has stalled at the start of the financial year, even as the Federal government’s Stage 3 tax cuts came into effect on 1 July,” ABS head of business statistics Robert Ewing said.
The flat result in August overall followed revised falls of 0.5 per cent in July and 0.1 per cent in June.
In trend terms, spending fell for the second consecutive month, and was down 0.1 per cent in August.
“In August, spending on services rose 0.4 per cent, growing for the second month in a row. The rise was led by higher spending on air travel, hotel accommodation, and dining out,” Ewing said.
“Growth was offset by a 0.3 per cent fall in spending on goods, as households spent less on new vehicles and automotive fuel.”
In year-on-year terms, household spending grew by 1.7 per cent in seasonally adjusted terms, and was up 2.4 per cent in original terms.
Household spending rose in most states and territories compared to the same time last year in calendar adjusted terms.
The largest percentage rises were seen in Western Australia (3.9 per cent), Queensland (2.7 per cent) and the Northern Territory (1.9 per cent), while Victoria and Tasmania fell 0.3 per cent.
For the NT in particular, clothing and footwear was the second-highest category for household spending, up 4.9 per cent in the region.
Queensland reported the highest lift in clothing and footwear spending, up 6.3 per cent.
Clothing and footwear spending fell in NSW (down 0.2 per cent) and Victoria (down 1.4 per cent), as well as the Australian Capital Territory (1.2 per cent).