In May 2025, household spending in Australia experienced a 0.9% increase compared to the previous month, recovering from a slightly revised stagnation in April and representing the most significant monthly growth since October 2024. Consumer expenditure saw a resurgence in sectors such as clothing and footwear, which increased by 3.7% from a decline of 3.5%; transport, which grew by 1.7% compared to a previous drop of 1.0%; and furnishings and household equipment, which rose by 0.6%, rebounding from a 0.5% dip. There was also an acceleration in spending on miscellaneous goods and services, climbing to 1.3% from 0.1%.
Conversely, expenditure continued to rise for health (1.1% from 1.7%), recreation and culture (0.5% from 0.8%), and hotels, cafes, and restaurants (0.8% from 2.3%), although these increases were at a reduced pace. However, spending decreased in the categories of food (-0.1% from 0.0%) and alcoholic beverages and tobacco (-1.4% from -4.7%).
Regionally, personal spending increased across all states and territories. The growth was most noticeable in the Northern Territory at 1.2%, while Tasmania saw a more modest rise of 0.6%. Annually, household spending rose by 4.2% from 3.8% in April, marking the strongest yearly growth in five months.
