What caused the turnaround in the Australian Bureau of Statistics (ABS) household spending data for May?

The Australian Bureau of Statistics recorded a 1.3% rise in household spending because of a recovery across all nine spending categories. This monthly increase reversed a 1.1% decline recorded by the ABS in April.

What are the annual growth figures reported by the Australian Bureau of Statistics?

The Australian Bureau of Statistics reported that annual household spending increased by 5.5% compared to May 2025. This shows an acceleration from the 5.1% annual rise reported by the ABS in April.

Why did transport spending figures change according to the Australian Bureau of Statistics?

The Australian Bureau of Statistics stated that transport spending rose 1.4% because travel-related refunds returned to normal. Figures from the ABS show this followed an April transport spending drop of 4.7% caused by flight cancellations linked to the Middle East conflict.

What does the retail discounting data mean for Australian Bureau of Statistics discretionary categories?

The Australian Bureau of Statistics discretionary categories grew because mid-season clearance and early end-of-financial-year sales events prompted a 2.7% rise in clothing and footwear spending.

Economy

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Australian household spending rises 1.3% in May

Written by Isaac FrancisPublished Jun 25, 2026, 2:35 AM

Australian household spending increased by 1.3% in May, reversing a 1.1% fall in the previous month.
The recovery was driven by a lift across all nine spending categories, bringing the annual spending increase to 5.5%.
The rise reflected a return to normal travel refunds alongside increased spending on dining out and retail sales discounting.

Australian household spending rose by 1.3% in May, according to the Australian Bureau of Statistics.

The monthly turnaround follows a revised 1.1% decline in April and a 1.7% increase in March.

"The rise in household spending largely reversed what was seen in April, reflecting a lift across all nine spending categories," said ABS head of business statistics Tom Lay.

Transport spending grew by 1.4% as travel refunds normalised after flight cancellations caused by the Middle East conflict elevated April figures.

Discretionary spending drove the broader gains, with clothing and footwear up 2.7% and hospitality up 1.9%.

Following the announcement, the Australian retail sector index was up 0.4% to 7,420 points.

Fuel spending volumes fell 0.4% during the month as the impact of the halved fuel excise duty continued to pass through to consumers.

Food spending also contributed to the positive monthly result by rising 1.1% to reverse an April drop caused by higher grocery prices.