26 September 2023

Household spending on the rise

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The Australian Bureau of Statistics (ABS) has reported that household spending increased by 7.7 per cent in February, compared to the same month in the year 2021.

Head of Macroeconomic Statistics at the ABS, Jacqui Vitas said the largest rises in household spending were for clothing and footwear (20.2 per cent), recreation and culture (17.8 per cent), and hotels, cafés and restaurants (15.6 per cent).

“Household spending increased in seven of the nine spending categories in February compared to February 2021,” Ms Vitas said.

“The only categories with decreased spending over the same period were on alcoholic beverages and tobacco (minus 10.3 per cent) and miscellaneous goods and services (minus 0.8 per cent),” she said.

Ms Vitas said the easing of COVID-19 pandemic restrictions over the month saw increased spending in recreation, hospitality and retail venues.

She said all States and Territories recorded increases in household spending in February.

Ms Vitas said Victoria (13.9 per cent) and Western Australia (12.1 per cent) saw the strongest increases and the Northern Territory recorded the weakest rise (0.6 per cent).

“When comparing February to pre-pandemic January 2020 estimates, total household spending increased 5.6 per cent in current price, calendar-adjusted terms,” she said.

“Health (up 25.4 per cent), food (up 13.4 per cent) and furnishings and household equipment (up 12.2 per cent) showed the strongest rises when compared to pre-pandemic levels,” Ms Vitas said.

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