Australian Bureau of Statistics (ABS) household spending data shows alcohol and tobacco was the only category to experience a fall in volumes in the December 2024 quarter, down 12.2%.
Westpac speculated that the weakness in alcohol and tobacco spending may reflect several factors, including trend declines in tobacco consumption, switching from ‘off license’ to ‘on-license’ consumption of alcohol (i.e. at pubs, bars, hotels and restaurants) and possible measurement issues that underestimate cash purchases.
The announcement follows ABS releasing data today that shows household spending rose 0.4% in December, according to seasonally adjusted figures released today.
This follows a 0.8% rise in November and a 1% rise in October.
Five of the nine spending categories saw growth in December, primarily fuelled by higher spending on discretionary goods and services. This included hotels, cafes and restaurants, which were up 0.9%.
ABS head of business statistics Robert Ewing said: “Household spending on discretionary goods and services rose 0.6%, which was the third straight monthly rise.
“The growth in December was driven by new vehicle purchases, dining out, air travel and streaming services.
“Continued strength in clothing and footwear, furnishings and household equipment, and goods for recreation and culture also contributed to higher discretionary spending.
“Consumers have capitalised on the end-of-year sales season, driving a sustained rise in spending to finish 2024.”
Spending growth was balanced across both goods and services in December, with goods spending up 0.4%, while services rose 0.3%.
Household spending grew in all states and territories. The highest percentage rises were seen in Western Australia (+0.7%), Tasmania (+0.5%) and the Northern Territory (+0.5%), while Queensland (+0.2%) experienced the smallest rise.
Categories: Business
