Household spending in Australia rose 1.3% month-over-month in May 2026, rebounding from a 1.1% decline in April. Spending increased across eight of the nine major consumption categories, with the strongest recovery recorded in clothing and footwear (2.7% vs -2.2% in April), followed by miscellaneous goods and services (2.2% vs -0.7%), transport (1.4% vs -4.7%), food (1.1% vs -1.1%), and recreation and culture (0.8% vs -0.2%). Meanwhile, spending continued to rise for hotels, cafes and restaurants (1.9% vs 0.9%), alcoholic beverages and tobacco (1.0% vs 0.4%), and furnishings and household equipment (0.8% vs 0.0%). Regionally, household spending rose in Western Australia (2.6%), the Northern Territory (2.1%), Victoria (1.7%), South Australia (1.6%), Queensland (1.1%), New South Wales (0.7%), and the Australian Capital Territory (0.6%). In contrast, Tasmania was the only jurisdiction to record a decline, with spending falling 0.5%. On an annual basis, household spending increased 5.5%.

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