Australian consumers have recently displayed a modest uptick in spending, with a 0.8 per cent increase reported in October, as revealed by the Commonwealth Bank’s Household Spending Insights (HSI) index. The rise in expenditure was primarily driven by a surge in ticket sales for major events, including concerts from popular artists like Oasis, Luke Combs, and Metallica, as well as the Melbourne Formula 1, which resulted in a remarkable 27 per cent increase in ticketing services.
Additionally, household spending on goods increased, although utility expenses declined due to government energy rebates and lower fuel prices. CBA’s chief economist Stephen Halmarick noted that while the marginal rise in spending could be attributed to recent income tax cuts and reduced petrol costs, it only partially offsets past declines. He indicated that significant increases in consumer spending are unlikely until the Reserve Bank of Australia (RBA) begins its interest rate cuts, expected around February 2025.
The HSI report also highlighted disparities in financial situations among different groups. While tenant spending increased by only 1.8 per cent this year, homeowners saw significantly higher rises. Meanwhile, Westpac’s consumer sentiment survey highlighted growing confidence, partially a result of the government’s tax cuts and expectations of stable interest rates. The RBA is set to have its final rates meeting for 2024 in December, with no rate cuts anticipated until early next year.