Key Points
- New ABS data shows how Australians are spending, including what they've cut back on.
- Spending on clothing and footwear has dropped 3.4 per cent over the year.
- But spending on food rose 5.8 per cent - a reflection of soaring food prices.
Australians are spending more on food but are cutting back on new clothes, shoes and furnishings and household equipment, as the rising cost of living continues to bite.
The latest data from the Australian Bureau of Statistics (ABS) shows household spending on discretionary — that is, non-essential — goods and services was 0.6 per cent lower than in May last year.
Most of the decline in discretionary purchases comes from people not spending as much on furnishings and household equipment, as well as clothing and footwear.
In the past year, spending on furnishings and household equipment dropped 4.8 per cent while spending on clothing and footwear dropped 3.4 per cent.
On the flip side, spending on food rose 5.8 per cent — a reflection of soaring food prices.
Australians are also spending a lot more on hotels, cafes and restaurants as well as transport. Spending on those categories all rose by at least 7.7 per cent.
Household spending rose 3.3 per cent in May compared to the same time last year. Credit: SBS
“While overall household spending rose 3.3 per cent in May compared to the same time last year, it was the lowest growth rate since July 2021. This comes as households respond to cost-of-living pressures,” said Robert Ewing, the ABS's head of business indicators.
Spending by state and territory
Western Australia recorded the largest increase in spending — 4.7 per cent — with residents mostly spending on transport and health. That was followed by the ACT and South Australia, with food and miscellaneous goods and services taking up most of that spend.
The Northern Territory had the smallest rise, with a 0.8 per cent increase in spending throughout the year.
Western Australia recorded the largest increase in spending. Credit: SBS
