Australian household spending rose 0.3% in June, with end-of-financial-year sales less impactful than in 2025, as inflation and higher-for-longer interest rates weighed on consumers, according to a Thursday report by Commonwealth Bank of Australia.
The bank said gains were recorded across 10 of the 12 spending categories, led by utilities and education, while household goods had a soft month despite the sales period. Retail spending eased to 0.2% in June from 0.6% in May.
Hospitality spending rose just 0.1% in June versus 0.9% in May, with sporting events hosted through the month doing little to boost growth, the report added. Recreation spending decelerated sharply from 2.3% in May to just 0.2% in June.
Belinda Allen, CommBank head of Australian economics, said the softening is broadly in line with expectations that household spending will slow over the remainder of the year.
Regional household spending growth accelerated in the year to June, with regional Queensland and regional Western Australia as the strongest performers, while metro New South Wales, the ACT, and metro Victoria as the weakest, per the report. Spending growth was strongest among those aged 65 and above at over 10% annually over the 12 months to June.