Australia’s household spending continued to climb in August, with the Commonwealth Bank’s Household Spending Insights (HSI) Index recording its sixth straight monthly increase.

The index rose 0.3 per cent for the month, extending the steady recovery in consumer activity seen since early 2024. The result follows July’s 0.7 per cent lift and gains of 0.5 per cent in both May and June.

Spending was strongest in Utilities, which jumped 2.9 per cent, reflecting higher seasonal demand. Communications and Digital services rose 1.0 per cent, while Recreation and Education both advanced by 0.6 per cent. Household Services also posted a 0.5 per cent increase. Smaller but positive contributions came from categories such as Motor Vehicles, Health, Transport and Hospitality.

Not all sectors shared in the rise. Insurance recorded a marginal decline of 0.1 per cent, marking its first drop since January. Household Goods fell 0.3 per cent, while Food and Beverage Goods edged down 0.1 per cent, easing back after strong mid-year activity.

Economists say the latest figures suggest consumer spending is returning to a more stable footing despite cost-of-living pressures. The continuation of modest growth across most categories could offer some reassurance to policymakers monitoring the balance between household demand and inflationary trends.

Source:commbank.com.au/newsroom