Australian household spending rose 1.1% in July, extending a streak of three consecutive monthly increases and marking the fastest annual pace since June 2023, according to data released by the Australian Bureau of Statistics on Thursday.
The total monthly household spending indicator reached A$82.34 billion ($59.13 billion) in July, based on an exchange rate of $1 = 1.3926 Australian dollars. The July increase follows a 1% rise in June, signaling resilience in consumer demand despite higher borrowing costs.
Spending growth was driven by higher outlays in recreation, food and health services, the data showed. The annual pace of spending growth accelerated to 7%, the highest since June 2023, suggesting that demand has remained robust even as monetary policy tightening has raised debt servicing burdens for households.
The figures challenge expectations that rising interest rates would weaken consumer spending sooner. Analysts had anticipated a slowdown following June's solid increase, but the latest data indicates that household budgets have not yet tightened materially.
