Household spending was 3.6 per cent higher than a year ago according to new figures from the Australian Bureau of Statistics (ABS).
Despite recording the third-lowest growth, clothing and footwear spending has lifted to 2 per cent in February 2024, up from 0.3 per cent in January and well up from a negative 4.9 per cent slump in December.
Clothing and footwear came ahead of furnishings and household equipment at negative 0.8 per cent - which is up from negative 6.2 per cent in December - and miscellaneous goods and services at negative 5.5 per cent, which is on a downward trend from December.
ABS head of business statistics Robert Ewing said growth in household spending has risen from its low point in December 2023.
“The 3.6 per cent rise in spending follows increases of 1.2 per cent in December, and 2.9 per cent in January,” Ewing said.
“Spending on transport rose 12.3 per cent, making the largest contribution to total spending growth, as automotive fuel prices increased 4.1 per cent as shown in the monthly Consumer Price Index Indicator.
“Consumers are also spending more on transport services such as air travel, tours, and cruises compared to the same time last year.
However, much of the spending growth is towards non-discretionary items, with this up 6.9 per cent, while discretionary goods and services fell 0.2 per cent. This highlights the shift in consumer behaviour due to cost-of-living pressures, according to the ABS.
Compared to the same time last year, household spending rose in all states and territories. The largest rises in spending were seen in South Australia, up 7.9 per cent, and the Australian Capital Territory, up 7.6 per cent.
The ACT recorded the highest lift in clothing and footwear spending at 12.2 per cent, followed by the Northern Territory (6.7 per cent), Tasmania (6.4 per cent), and South Australia (6.2 per cent). Queensland came fourth in clothing and footwear spending growth of 4.3 per cent, while New South Wales was up by 2.8 per cent. Western Australia recorded a zero per cent growth, while Victoria fell into the negative at 1.3 per cent.
All states and territories had higher spending growth rates across all categories than in January. South Australia had the largest rise, up from 4.0 per cent in January to 7.9 per cent in February.