Australian Household Spending Rises for Third Month as Private Capex Falls 3.6%
Synopsis
Australian household spending continued its upward trend in July, rising 1.1%, while private new capital expenditure declined 3.6% in the June quarter after a major data centre investment surge.
Australian household spending increased for the third consecutive month in July while private new capital expenditure declined in the June quarter, highlighting contrasting trends in consumer activity and business investment.
According to the Australian Bureau of Statistics (ABS), household spending rose 1.1% in July, following increases of 1% in June and 1.2% in May.
The latest monthly gain was driven by stronger spending across recreation and culture, food, hotels, cafes and restaurants, and health.
Household Spending Reaches Highest Annual Growth Since 2023
ABS head of business statistics Tom Lay said spending across the four categories increased by 1.5%, 1%, 1.1% and 1.2%, respectively.
Households also spent more on pharmaceuticals, general healthcare services, eye care and dental treatment during the month. In nominal terms, household spending was 7% higher than a year earlier, marking its strongest annual growth since June 2023.
Fuel spending also increased. It rose 2.2% in nominal terms after the fuel excise duty increased by 16 cents per litre from July 1.
However, experimental ABS data indicated that the volume of fuel purchased fell 4.7% in July, reversing part of a 7.9% increase recorded in June.
Private Capital Expenditure Falls After Data Centre Surge
Separate ABS figures showed private new capital expenditure fell 3.6% in the June quarter, with the decline largely linked to a sharp pullback in information media and telecommunications equipment spending.
Spending in the category plunged 53%, following a record investment surge in the previous quarter. The earlier increase had been driven by major spending on data centre equipment, producing a 199.6% quarterly jump.
The contrasting figures point to a mixed picture for the Australian economy. Consumer spending has continued to strengthen through July, while business investment has moderated following an unusually large technology-related spending increase in the previous quarter.
Source: Capital Brief
Vishal is an experienced Editor at Inspirepreneur Magazine with key interests in artificial intelligence, eCommerce, entrepreneurship, lifestyle and startup sector. Prior to joining Inspirepreneur, he was a Content Writer cum Correspondent at Siliconindia Magazine, where he worked on Company Profiles, Cover Stories, Executive Profiles, Feature Articles and Thought Leadership content.
