CommBank Household Spending Insights Index rose 0.2 per cent in March, however the Index is still below November 2023 as spending on household goods continues to fall.
The monthly CommBank Household Spending Insights (HSI) Index increased 0.2 per cent in March to 141.81 led by shoppers stocking up the fridge ahead of the earlier-than-usual Easter break.
The spending uplift was led by Food & Beverage (up 4.0 per cent) and Transport (up 4.2 per cent). Supermarkets, liquor stores, convenience stores, butchers and bakers were the major recipients. While on the roads, higher fuel prices and the Easter long weekend saw increased spending at petrol stations (+7.4 per cent), ride sharing services (+14.5 per cent) and public transport (+6.7 per cent).
New South Wales saw a significant increase in spending, up 2 per cent, to move from well below the national average to above the national average. Western Australia remains the strongest state for the year to March (+4.3 per cent), while spending in the NT was the weakest at -0.9 per cent, joining Tasmania, Victoria and the ACT below the national average.
While 10 of the 12 HSI spending categories increased in March, the rise across most categories was modest and the HSI Index remains lower than the 142.6 reading in November 2023, pointing to a softening of household spending since the final RBA rate hike that month.
Notably, spending on household goods fell for the third time in four months (-1.7 per cent), suggesting household budgets are adjusting to the tough environment by prioritising spending elsewhere. Recreation was also down 6.8 per cent in March, following a spending boost at summer music events. Household goods spending is now negative for the year, while Recreation spending is up a small 0.4 per cent year to March. These tr
