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Australian Consumer Spending Rises 1.2% in June, Up 6.8% Year-on-Year, Says NAB

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Australian consumer spending rose 1.2% in June and 6.8% over the year, with spending excluding fuel up 1.4% in the month and 7.1% annually, according to a Thursday report by National Australia Bank.

The bank said spending rose for a second consecutive month, led by discretionary spending, which increased 1.9% in June across all categories except hospitality, while non-discretionary spending remained flat, with higher health, education, and food spending offset by lower fuel spending.

Despite June's lift, spending growth slowed slightly in the June quarter to 1.5% from 1.7% in the March quarter, with growth over the year driven by essential spending, particularly utilities and telecoms, as energy bill rebates ended, while discretionary spending grew 6.6% over the year, the report added.

NAB Chief Economist Sally Auld said the June data suggested consumer spending had held up better than expected, with the next few months important in assessing the underlying trend, while NAB expects spending growth to ease over the rest of the year as momentum in the broader economy moderates.

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