Consumer Panel Q1 2026

Q1 2026 saw Australian consumer spending growth stall as households reallocated funds to cover a massive spike in fuel and utility costs. While savings buffers remain high for mortgage holders, they are beginning to erode, particularly among young and middle-income cohorts.

Key Takeaways

• 1.Australian consumer spending growth slowed to 0.6% in Q1 2026, driven by a sharp reallocation from discretionary categories to essential items like fuel and utilities.
• 2.Household savings accumulation is slowing down, with the share of customers relying on savings (consecutive drawdowns) reaching its highest level in two years for under-65s.
• 3.Mortgage holders maintain significant buffers (averaging 22.6 months of essential expenses), but these buffers are beginning to erode as mortgage repayments and food costs rise.

Table of Contents

• Signs of caution emerging
• Who is hurting the most?
• Where are they substituting from?
• Are consumers drawing from their savings?
• How are mortgagors placed to weather this?
• What does this mean for the RBA?
• About the Westpac-DataX Consumer Panel

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