Household Spending Falls In March: Australia

Household spending fell 0.3 per cent in March, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This follows growth of 0.3 per cent in February and 0.5 per cent in January.

Robert Ewing, ABS head of business statistics, said: 'Household spending fell in March, after rising for five months in a row.

'Queensland saw a 1.3 per cent fall in spending, as ex-tropical cyclone Alfred impacted parts of the state. Transport and Health spending were especially affected, falling 3.9 per cent and 3.3 per cent respectively.

'Food spending in Queensland rose 2.9 per cent as households stockpiled before the cyclone made landfall.'

Elsewhere, spending fell in New South Wales (-0.3 per cent) and South Australia (-0.3 per cent), but rose in the Australian Capital Territory (+0.6 per cent) and Victoria (+0.4 per cent).

Nationally, six of the nine spending categories fell in March, led by Alcoholic beverages and tobacco (-2.6 per cent), Hotels, cafes and restaurants (-1.1 per cent), and Transport (-0.5 per cent).

Household spending was 3.5 per cent higher than the same time last year. Recreation and culture (+5.4 per cent) and Food (+5.7 per cent) made the largest contributions to this rise.

Services spending was 5.1 per cent higher than March 2024, while Goods spending was up 2.3 per cent.

This is the first month where the spending indicator includes seasonally adjusted volumes that factor in inflation.

'This new data shows household spending volumes were relatively unchanged at 0.0 per cent in March quarter 2025 compared to the previous quarter,' Mr Ewing said.

'This comes after volumes growth of 1.6 per cent in December quarter 2024 and a fall of 0.3 per cent in September quarter 2024.'

Miscellaneous goods and services (+1.5 per cent), Recreation and culture (+0.9 per cent) and Food (+0.4 per cent) had the largest rises in March quarter 2025, while Alcoholic beverages and tobacco fell 5.9 per cent.