Annual household spending up 10.2 per cent in June

Household spending grew 10.2 per cent in the year to June 2022 – the 16th consecutive month of through-the-year increases, according to the Australian Bureau of Statistics (ABS).

“This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to COVID-19 were experienced across the country,” says Jacqui Vitas, head of macroeconomic statistics at the ABS.

“Spending categories most impacted from COVID-19 responses (transport, hotels, cafes and restaurants, and clothing and footwear) have now returned to pre-pandemic levels.”

In June 2022, transport spending jumped 22.7 per cent, driven by higher petrol prices and demand for air travel. Strong growth was also seen in spending on hotels, cafes and restaurants (up 17.1 per cent), clothing and footwear (up 16.3 per cent) and recreation and culture (up 15.5 per cent).

However, not all spending categories saw strong growth. Spending on health, alcoholic beverages, tobacco, and food recorded only moderate rises.

All states and territories recorded increases in household spending in June 2022, compared to June 2021.

Queensland (up 12.4 per cent) and Victoria (up 11.8 per cent) enjoyed the highest gains in spending over the year.

Vitas adds that total household spending increased in each month of the June quarter of 2022, with June having the highest increase (10.2 per cent). During the three months of the quarter, spending on health in April 2022 was the only category to show a decrease.