Australian household spending surged 3.6% year over year in February.

Transport expenses led the growth, rising 12.3%, driven by higher fuel prices and increased spending on travel services like air travel and cruises.

Discretionary spending dipped slightly by 0.2%, contrasting with a 6.9% rise in non-discretionary expenditure, reflecting shifting consumer behaviour amid rising living costs.

Spending growth was observed across all states and territories, with South Australia and the Australian Capital Territory experiencing the largest increases at 7.9% and 7.6%, respectively, surpassing growth rates in January.