Household spending rose 0.9 per cent in May, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).
This follows a flat result in April and a 0.1 per cent fall in March.
Robert Ewing, ABS head of business statistics, said: 'The rise in May was driven by spending on discretionary goods and services.
'Discretionary spending rose 1.1 per cent, as households spent more on clothing and footwear, new vehicles, and dining out.
'Meanwhile, non-discretionary spending was up 0.5 per cent, rising for a fifth consecutive month.'
| Discretionary (%) | Non-discretionary (%) | Total (%) | |
|---|---|---|---|
| Dec-24 | 0.6 | -0.3 | 0.3 |
| Jan-25 | 0.0 | 1.7 | 0.6 |
| Feb-25 | 0.3 | 0.1 | 0.2 |
| Mar-25 | -0.2 | 0.2 | -0.1 |
| Apr-25 | -0.3 | 0.7 | 0.0 |
| May-25 | 1.1 | 0.5 | 0.9 |
Seven of the nine spending categories rose in May, led by Clothing and footwear (+3.7 per cent), Transport (+1.7 per cent), and Miscellaneous goods and services (+1.3 per cent).
Alcoholic beverages and tobacco (-1.4 per cent) and Food (-0.1 per cent) were the only categories that fell.
| Mar-2025 (%) | Apr-2025 (%) | May-2025 (%) | |
|---|---|---|---|
| Food | 1.4 | 0.0 | -0.1 |
| Alcoholic beverages and tobacco | -0.8 | -4.7 | -1.4 |
| Clothing and footwear | -0.6 | -3.5 | 3.7 |
| Furnishings and household equipment | 0.1 | -0.5 | 0.6 |
| Health | -0.7 | 1.7 | 1.1 |
| Transport | -0.5 | -1.0 | 1.7 |
| Recreation and culture | 0.2 | 0.8 | 0.5 |
| Hotels, cafes and restaurants | -1.0 | 2.3 | 0.8 |
| Miscellaneous goods and services | 0.5 | 0.1 | 1.3 |
| Total | -0.1 | 0.0 | 0.9 |
Household spending was 4.2 per cent higher than the same time last year. Health (+8.4 per cent) and Miscellaneous goods and services (+8.3 per cent) have seen the largest percentage rises in the 12 months to May.
Services spending was 7.5 per cent higher than May 2024, while goods spending was up 1.5 per cent.
Household spending grew in all states and territories. The Northern Territory had the largest percentage rise (+1.2 per cent), followed by Queensland and Western Australia (both up 1.0 per cent).
| Mar-2025 (%) | Apr-2025 (%) | May-2025 (%) | |
|---|---|---|---|
| NSW | -0.3 | -0.6 | 0.9 |
| Vic. | 0.8 | -1.0 | 0.7 |
| Qld | -1.3 | 2.2 | 1.0 |
| SA | 0.0 | -0.2 | 0.8 |
| WA | 0.7 | 0.5 | 1.0 |
| Tas. | 0.4 | -1.1 | 0.6 |
| NT | -0.3 | -0.9 | 1.2 |
| ACT | 0.4 | -0.5 | 0.9 |
Over the past year, the ABS has made improvements to the Monthly Household Spending Indicator (MHSI).
'The improvements made to the MHSI mean that it is no longer an experimental indicator,' Mr Ewing said.
'It will be the primary source of monthly household spending when the Retail Trade publication ends from 31 July 2025.'
