Australian households defy expectations, spending continues to climb amid rate hikes

Resilient households have continued to spend in July, even as interest rate hikes and rising fuel prices hit consumers budgets.

Australian Bureau of Statistics figures show household spending surged 1.1 per cent in July.

This is the third month in a row households have spent more following a surprise jump in June when spending rose 0.8 per cent and May when households spent 1.2 per cent more on items.

Spending is now up 7 per cent, in nominal terms, across the past 12 months.

This is a nominal figure, which means it is not adjusted for the impacts of inflation, which came in at 3.5 per cent over the same time period.

Prior to Thursday’s figures, markets expected spending to remain up a further 0.3 per cent and annual growth at 5.7 per cent.

Spending was expected to slow due to household income growth easing and household wealth declining because of the weak housing market.

Originally published as Australian households defy expectations, spending continues to climb amid rate hikes