Weak Australian Household Spending But Strong Capex

Australian economic data shows a sharp contrast between a 1.1% drop in household spending and a robust 6.5% rise in Q1 capex driven by data center investment. ANZ expects the RBA to maintain the cash rate at 4.35% as weak consumer demand and imports offset the investment surge.

Key Takeaways

• 1.Australian household spending fell 1.1% in April 2026, suggesting a waning in consumer demand following a strong end to 2025.
• 2.Q1 2026 Capex was significantly stronger than expected, rising 6.5% q/q, driven by a massive 196.1% q/q surge in information media and telecommunications investment.
• 3.Monetary policy is expected to remain steady, with the cash rate likely staying at 4.35% due to soft household demand and better-than-expected inflation data.

Table of Contents

• Monthly household spending indicator
• Capex
• Important Notice

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