Online marketplaces, discount department stores and women’s clothing stores have held up year-on-year household goods spending, according to new data from Commonwealth Bank.
The annual rate of increase in household goods spending remained broadly steady at 6.5 per cent in the year to July 2025.
Men’s clothing stores were next on the list in holding the rate steady, alongside hardware stores. This was partially offset by large declines in tobacconists, online deals, and paint stores.
In month-on-month terms, household goods spending lifted just 0.4 per cent, the sixth consecutive monthly increase since February this year.
According to CommBank Insights, household goods was one of the weakest categories in 2023 and 2024.
The lift in household goods in July added to an overall lift to the CommBank Household Spending Insights (HSI) index, which was up 0.8 per cent. This is higher than the revised June 2025 lift of 0.5 per cent.
The key drivers of the overall lift were spending on recreation (up 1.8 per cent) and hospitality (up 1.5 per cent), which were both boosted by the visiting British & Irish Lions and State of Origin decider during the month.
The past five months of steady spending growth suggest consumers are becoming more confident and willing to open their wallets, according to CBA Senior Economist Belinda Allen.
“The British & Irish Lions rugby tour and State of Origin decider helped boost spending in July as fans spent up on travel, entertainment and accommodation,” Allen said.
“We have been anticipating a lift in household spending for some time, supported by rising real disposable incomes, increased household wealth, and a resilient labour market. Although the recovery has taken longer than expected to materialise, the consistent growth in recent months gives us confidence that momentum is building.
“We expect a further pickup in spending through the rest of this year and into next, helping to drive a broader economic recovery.”
Including household goods, ten out of the twelve categories recorded growth in July. Beyond recreation and hospitality and household goods, other spending categories recording gains during the month included motor vehicles, insurance and health.
Spending on education was flat, and utilities (down 0.5 per cent) was the only category to see a fall during the month.
The biggest gains in over the year spending included communications and digital (up 10.9 per cent), recreation (up 10.3 per cent) and hospitality (up 10.0 per cent).
Education is now the weakest category over the year (down 1.8 per cent), while spending on utilities is now in positive territory as the cost of living energy subsidies are gradually wound back.
“Strong growth in spending on recreation and hospitality over the year underscores that consumers are prioritising experiences and being deliberate about their spending choices,” Allen said.
“Following the August interest rate cut, we expect the RBA to cut the cash rate once more in November to 3.35 per cent. A lower rate environment should help fuel consumer optimism and spending in the year ahead, and into 2026.”