In brief
Australian household spending rose 0.6 percent in September after a 0.1 percent fall in August, according to the Australian Bureau of Statistics. The increase came across both essential and discretionary categories, with transport and health leading the gains. Quarterly, spending grew 0.7 percent, marking four consecutive quarters of expansion.
In Canberra on Monday, the Australian Bureau of Statistics (ABS) released data showing household spending rose 0.6 percent in September, after a 0.1 percent decline in August.
The increase covered both essential and discretionary categories, with transport and health each gaining 1.5 percent, and recreation and culture growing 0.8 percent.
Drivers of the increase
Transport spending climbed on higher fuel, vehicle repair and maintenance costs and domestic air travel, as many Australians traveled to attend major sporting events. Fuel expenditure jumped 5.4 percent in September, a rise attributed to global oil price gains and the end of fuel excise relief on 3 August.
Although total fuel spending rose, experimental ABS data indicated that the volume of fuel purchased fell 2.2 percent during the month, after a 0.6 percent decline in August.
Health spending accelerated because of more doctor visits, dental and optometric services, pharmaceuticals and toiletry goods. The ABS noted that late-season flu activity likely increased demand for medical consultations and medicines.
On a quarterly basis, household spending grew 0.7 percent in the September quarter, marking the fourth consecutive quarter of growth. Seven of nine spending categories posted increases during the quarter.
Transport recorded the strongest quarterly growth, rising 1.6 percent, led primarily by higher spending on air travel.
Tom Lay, head of business statistics at the ABS, highlighted that the combined gains in transport and health were key drivers of the overall growth in household spending.
The data suggest that Australian consumers are maintaining spending momentum despite modest inflationary pressures, and the continuity of growth across categories paints a steady, if uneven, picture of household economic activity.