Australian Household Spending Increases Again in January

Image Credit: Reuters 

Australian household spending increased for the fourth consecutive month in January, driven by higher spending on services, although the annual growth rate slowed, according to data released on Friday.

The Australian Bureau of Statistics' monthly household spending indicator (MHSI) showed a seasonally adjusted rise of 0.4% in January compared to December, which had seen a 0.2% increase. However, annual growth slowed to 2.9% from 4.2% in the previous month.

Robert Ewing, head of business statistics at ABS, noted that consumers reduced spending on goods after taking advantage of promotions like Black Friday sales in late 2023. A 1.5% increase in spending on services contributed to January's growth, particularly in areas such as health services, air travel, and sports and physical recreation.

Starting in July, the MHSI will replace the current retail sales report and will cover 68% of household consumption—more than double the scope of the retail survey. This broader measure, which includes services, is expected to provide a clearer view of household consumption and its impact on the GDP report.

Paraphrasing text from "Reuters" all rights reserved by the original author