Modest Increase in Australian Household Spending Amid Service Sector Decline

Reported 26 days ago

Australian household spending saw a modest increase of 0.5% in June, driven by spending on goods like food and electronics, despite a 0.5% decline in services such as air travel and health. This reflects slower impacts of lower borrowing costs and rising real incomes on the economy. The annual spending growth improved to 4.8%, the highest since early 2024, as consumer confidence rose. However, household spending, which represents about 52% of GDP, has contributed minimally to economic growth recently.

Source: YAHOO

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