Household spending in Australia showed no growth in August, remaining unchanged at 0.0%, according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS).
This follows a decline of 0.5% in July and 0.1% in June, marking a period of sluggish consumer activity.
Robert Ewing, head of business statistics at the ABS, commented on the stagnation: "Growth in household spending has stalled at the start of the financial year, even as the Federal government’s Stage 3 tax cuts took effect on 1 July."
In trend terms, household spending declined for the second consecutive month, dropping by 0.1% in August.
The data revealed a mixed picture, with spending on services increasing by 0.4%, led by higher expenditures on air travel, hotel stays, and dining out. However, this growth was offset by a 0.3% decline in spending on goods, particularly in the areas of new vehicles and automotive fuel.
On a year-on-year basis, household spending increased in most states and territories, with the largest gains in Western Australia (3.9%), Queensland (2.7%), and the Northern Territory (1.9%). In contrast, Victoria and Tasmania saw spending decline by 0.3%.