Australia’s household spending rose in July, with the CommBank Household Spending Insights (HSI) Index increasing by 0.8%. The rise was led by higher outlays on recreation (up 1.8%) and hospitality (up 1.5%), with major sporting fixtures such as the British & Irish Lions rugby tour and the State of Origin series finale drawing crowds and encouraging extra travel, dining, and entertainment spending.

CommBank senior economist Belinda Allen noted that household expenditure has now recorded steady growth for five consecutive months, signalling a lift in consumer confidence. She attributed the improvement to factors including stronger real disposable incomes, higher household wealth, and ongoing strength in the labour market.

While the upturn in spending had been expected for some time, Allen said the pace of recovery had been slower than forecast. However, she added that the recent consistent gains suggested momentum is building, with further increases likely through the remainder of this year and into 2026, supporting broader economic growth.

Source: www.commbank.com.au