Australian Economic Update

Latest edition · August 27, 2026

household spending report july2026

Australian nominal household spending rose 1.1% m/m in July, beating expectations of 0.3% m/m and pushing annual growth to 7.0% y/y. Coupled with upside CPI pressures, the strong spending trend supports ANZ's forecast of an RBA rate hike in November.

Australian household spending increased 1.1% m/m in July, recording its third consecutive monthly expansion and significantly exceeding consensus estimates of 0.3% m/m. Annual growth reached 7.0% y/y, driven by broad-based gains across categories, notably discretionary spending which surged 7.8% y/y. Six-month annualized growth reached its highest level since early 2023. Coming on the heels of elevated CPI data indicating an overshoot of the Reserve Bank of Australia's Q3 trimmed mean inflation forecast, the robust spending data reinforces ANZ's expectation of an RBA interest rate increase in November.

Key takeaways from the latest edition

• 1.Australian nominal household spending grew 1.1% m/m in July, exceeding market expectations of 0.3% m/m and lifting annual growth to 7.0% y/y.
• 2.Discretionary spending accelerated to 7.8% y/y, led by strong monthly gains in clothing and footwear (+1.6% m/m) and recreation and culture (+1.5% m/m).
• 3.The upside spending surprise and pick-up in consumer demand, alongside high trimmed mean CPI, reinforce ANZ's forecast for an RBA rate hike in November.

What this series covers

• Strong Australian discretionary spending in July
• Monthly Household Spending Indicator

Edition archive

• household spending report july2026

  August 27, 2026

• Australia s housing market downturn to continue

  July 1, 2026

• Australia s labour market and spending rebounded in May 1

  June 25, 2026

• Australia s Q1 2026 GDP Seeds of a slowing in growth

  June 3, 2026