Australian household spending rose unexpectedly by 1.3% in October according to fresh data from the Australian Bureau of Statistics (ABS), surpassing market expectations of a 0.6% increase and marking the largest monthly lift since January 2024.
On a year-on-year basis, spending was up 5.6% compared to October 2024, following a 5.1% increase in September.
Tom Lay, head of business statistics at the Australian Bureau of Statistics (ABS), noted: “Discretionary spending surged this month led by goods as promotional events saw households spend more on clothing, footwear, furnishings and electronics following months of weaker spending in these categories.
"Services spending also rose in October, as major concerts and cultural festivals drove up demand for catering, hospitality and hotel stays in major cities.”
In October, goods spending rose 1.7% month on month, while services spending increased 0.8%.
Discretionary spending climbed 1.6%, up from just 0.1% in September, while non-discretionary spending rose a steady 0.8%.
All nine categories tracked by the ABS saw growth, led by clothing and footwear, up 3.5%, furnishings and household equipment, which gained 3%, and hotels, cafes and restaurants, up 2.2%.
However, ANZ economists cautioned that the surge is “unlikely to be repeated next month”, noting that an earlier start to promotional events may have shifted some spending forward from November.
