Australian Household Spending Nudged Higher in February

By James Glynn

SYDNEY--Australian household spending continued to grow in February, highlighting the economy's relative strength ahead of the oil price shock now hitting activity.

Household spending increased 0.3% in February, matching January's gain and following a 0.5% decline in December, the Australian Bureau of Statistics said Tuesday.

Household spending was up 4.6% from a year earlier, the ABS said.

Spending by households will likely come under pressure in coming months as the combination of much higher fuel costs and interest rate increases by the Reserve Bank of Australia to curb inflation weigh on confidence.

Consumer confidence has already hit its lowest levels since the early 1970s, as fuel shortages and price increases add to costs and threaten vulnerable firms, including transport companies.

The RBA raised interest rates in February and March, with some economists expecting three more increases by August.

Discretionary spending rose 0.5% in February, driven by recreational and cultural activities for concerts and musicals--as well as higher air travel and accommodation services, the data showed.

Transport spending fell 0.4% in February, largely due to lower fuel prices.

Household spending rose in six out of the eight states and territories in February, the ABS said.

Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

April 06, 2026 22:45 ET (02:45 GMT)