Household spending in Australia climbed 0.9% mom in May 2025, rebounding from a marginally revised flat reading in April and marking the fastest pace of growth since October 2024. The pickup was supported by a rate cut from the Reserve Bank during the month, which helped boost spending activity. Expenditures bounced back for clothing and footwear (3.7% vs -3.5%), transport (1.7% vs -1.0%), and furnishings (0.6% vs -0.5%).
Moreover, spending on miscellaneous goods and services accelerated (1.3% vs 0.1%) while outlays continued to rise for health (1.1% vs 1.7%), recreation (0.5% vs 0.8%), and hotels, cafes, and restaurants (0.8% vs 2.3%). In contrast, spending fell for food (-0.1% vs 0.0%) and alcoholic beverages (-1.4% vs -4.7%). Regionally, expenditure increased across all states and territories, with gains ranging from 0.6% in Tasmania to 1.2% in the Northern Territory. On an annual basis, personal expenditures increased by 4.2%, the strongest yearly growth in five months.
