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Australian household spending increased 0.9% in May 2025, according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS), indicating a renewed pace in consumer outlays following flat activity in April and a 0.1% dip in March.
The ABS reported that discretionary spending accounted for much of the increase. Outlays on clothing, vehicles, and dining out contributed to the month’s upward movement. Total spending reached $76.45 billion, a 4.2% rise compared to the same period last year.
Spending on discretionary items rose 1.1% over the month, while non-discretionary items, which include health, automotive repairs, and medical products, increased by 0.5%—the fifth straight monthly gain for that category.
Seven of the nine consumption groups recorded increases. The most notable month-on-month gains were in clothing and footwear (+3.7%), transport (+1.7%), and miscellaneous goods and services (+1.3%). Only two categories declined: alcoholic beverages and tobacco (-1.4%) and food (-0.1%).
Service-related expenditure grew 0.9% in May, up 7.5% compared to May 2024. Spending on goods increased 0.8% from April and 1.5% over the year.
All Australian states and territories posted higher household spending for the month. The Northern Territory led with a 1.2% increase, driven by growth in spending on miscellaneous goods and services (+5.5%), household furnishings (+3.4%), and clothing and footwear (+2.4%). Queensland and Western Australia followed, each posting a 1.0% increase. In Queensland, the largest contributors were transport (+2.1%), hospitality services (+1.6%), and health (+1.2%).
Recent adjustments to the ABS Monthly Household Spending Indicator (MHSI) have brought changes to how household consumption is tracked. The indicator, which draws on aggregated and de-identified banking data, supermarket sales, and motor vehicle transactions, has been updated and will replace the Retail Trade publication as the primary monthly spending measure from July 2025.
ABS head of business statistics Robert Ewing said the revised indicator will serve as the main reference once the Retail Trade series concludes after the June reference period. The updates were first announced in November 2023.
The MHSI categorises household consumption based on the international COICOP standard, covering nine of the 13 divisions. Data is compiled nationally and across all states and territories. The ABS notes that MHSI data should not be directly compared to its other household consumption products due to methodological differences.
