New Commonwealth Bank data has revealed a flatline in spending on household goods in September 2023, at negative 0.1%.
It follows a revised gain of 1.4% lift in August.
Despite the monthly decline in September, the annual rate of change in household goods spending improved slightly from negative 3.9% a year in August to negative 2.9% a year in September.
CommBank highlighted a reduction in spending in jewellery stores, department stores and luxury boutiques, alongside household appliances and furniture.
Used and second-hand stores, online marketplaces and lower price department stores and retailers are offsetting the slip.
Overall, the monthly CommBank Household Spending Insights (HSI) index rose 0.5% to 137.4 in September, led by increased spending on hospitality and food & beverages, higher petrol prices and increased education spending.
“The monthly increase in the CommBank HSI Index has stabilised at 0.5-0.6 per cent since June, up from an average increase of 0.2 per cent from February to May,” CBA chief economist Stephen Halmarick said. “Recent household spending data has proved more resilient than expected.
“Part of this is price driven, but it also reflects strong income growth from the tight labour market and accumulated savings.
“Although the annual growth rate of spending remains weak, the lift of the Commbank HSI Index in September shows that the risk of a higher Reserve Bank of Australia cash rate remains. Forthcoming CPI and wages data for Q3 2023 will be critical for the future direction of interest rates.”
Victoria saw the joint biggest spending growth among the states driven by the recent AFL finals series, according to CBA, with spending up 1.5% in September.
This reverses the recent trend of Victoria having the weakest monthly spending growth. However, its annual spending growth remains the weakest of any state at just 0.2 per cent.
ACT also saw spending growth of 1.5 per cent, up from 1.1 per cent in August. NSW and Queensland had modest monthly spending growth of 0.6 per cent, while Tasmania was softest on the month with a fall of -0.1 per cent.
The CommBank HSI Index is based on de-indentified payments data from approximately 7 million CBA customers. It uses all CBA credit and debit card transactions - including ATM, BPAY and direct debit payments - to show national and state-based Australian consumer spending each month.