Monthly household spending fell 1.1 per cent in April 2026, with clothing and footwear adding to the total slip.
This is according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS).
The slip in April follows a 1.6 per cent rise in March, and a rise of 0.3 per cent in February.
Transport drove the total spending slip, with spending in the category plunging by 4.7 per cent. That followed a 5.4 per cent monthly lift in March.
Fashion spending dropped by 2.2 per cent in April, following a 0.9 per cent lift in March.
Across the states, clothing and footwear spending was down in all states except for Western Australia, with that state recording a 0.9 per cent lift in April.
New South Wales and Victoria recorded the strongest dips, down 3 per cent and 3.2 per cent respectively. South Australia came third, down 2.2 per cent, with Queensland, Tasmania and the Northern Territory recording slips of just over 1 per cent.
The fall in transport spending reflected widespread impacts and responses to the conflict in the Middle East, ABS noted. Air transport was the largest contributor to the decline, as households scaled back travel in response to broader uncertainties and higher airfares.
Higher jet fuel costs also added to the fall in transport spending, as airlines cancelled routes during the month to keep services viable. The resulting refunds are recorded as a reduction in air transport.
Fuel spending remained elevated compared to before the Middle East conflict but eased in comparison to March. This was supported by the Federal Government halving the fuel excise duty in response to rising fuel prices, which took place from April 1.
Experimental data produced by the ABS suggests that the volume of fuel spending increased by 2.0 per cent in April, following a 1.5 per cent fall in March.
“The fuel excise discount provided some immediate relief to household budgets. We also saw spending on public transport ease in states offering free travel, particularly Victoria and Tasmania,” ABS head of business statistics Tom Lay said.
A rise in new vehicle sales provided a partial offset to the broader transport decline. Electric vehicle (EV) sales, which have been trending higher over the last year, increased significantly in April as EVs accounted for a growing share of overall new vehicles sales. This points to a shift in consumer behaviour as households adjust for rising fuel prices.
“Food spending also fell by 1.3 per cent, reflecting a return to normal levels after the higher purchases we saw in March. The shift towards generic brands and cheaper products in supermarkets continued into April, reflecting ongoing price consciousness among households,” Lay said.