New data from the Australian Bureau of Statistics reveals that household spending dipped 0.4% in December 2025, a sharp reversal after a high-spending spring fueled by major sales events.
While the annual spending remains 5% higher than the previous year, the monthly decline suggests that consumers may have exhausted their budgets during the October and November 2025 sales.
According to Tom Lay, ABS head of business statistics, the downturn was largely driven by households "bringing forward" purchases to capitalise on earlier discounts.
The contraction hit both discretionary and essential sectors: clothing and footwear were down 2.4%, furnishings and household equipment were down 1.7% and health was down 1.3%, partially attributed to increased bulk-billing rates lowering out-of-pocket costs.
