Overview
- The Australian Bureau of Statistics reported monthly household spending rose 0.8% in June to A$81.3 billion, above analyst forecasts.
- June followed a 1.2% jump in May and lifted real spending for the June quarter by 0.7% to A$227.8 billion.
- The ABS said gains were concentrated in discretionary categories such as hotels, cafes and restaurants, recreation, furnishing and household equipment.
- Sales of new electric vehicles increased and helped drive transport spending as households adjusted to high petrol prices.
- Economists and markets say the back-to-back upside surprises, together with a still-firm labour market, make further Reserve Bank tightening and a stronger Australian dollar more likely, which could push up borrowing costs for households.