, Australia

Australian household spending jumps 10.2% YoY in June

Spending in categories most affected by COVID-19 is now back to pre-pandemic levels.

Household spending increased by 10.2% year-on-year (YoY) in June, with all categories logging increases during the period according to data released by the Australian Bureau of Statistics (ABS).

In a statement, Jacqui Vitas, head of macroeconomic statistics at ABS, said this was the 16th consecutive month of through-the-year increases, adding that spending categories most affected by the COVID-19 measures such as transport, hotels, cafes and restaurants, and clothing and footwear, have now returned to pre-pandemic levels.

ABS said transport spending rose 22.7% in June due to higher petrol prices and demand for air travel. Hotels, cafes and restaurants spending jumped 17.1%, clothing and footwear were up 16.3%, whilst recreation and culture climbed 15.5%.

READ MORE: Australia’s retail sales up 1.4% in Q2

However, health (0.8%), alcoholic beverages and tobacco (0.9%) and food (1.8%) only posted moderate increases.

Household spending in all states and territories rose year on year, with Queensland and Victoria leading with 12.4% and 11.8% growth, respectively.

Total household spending consistently declined from March 2020 to February 2021 with the implementation of COVID-19 measures, Vitas said.

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