Australian consumers were spending more in January this year than 2021, the ABS has found. According to a new report, household spending jumped by 4.3 percent in January 2022 YoY.
There were lifts in seven out of nine categories across the board in the month. This increase in spending was attributed to an 11.3 percent uplift in recreational and cultural purchases and a 9.7 percent increase in food, said Jacqui Vitas, the Head of Macroeconomic Statistics.
“The only categories with decreased spending compared with January 2021 were on alcoholic beverages and tobacco (-10.6 percent) and furnishings and household equipment (-4.0 percent),” Vitas explained.
Reasons for this uplift in spending is likely linked to the reduced COVID restrictions following Christmas. This resulted in Australians spending more time in restaurants and retail venues, she said.
There were recorded lifts in most states of Australia. Only NT recorded a decrease (-2.4 percent) compared to 2021. This is likely because it was the only state or territory that still imposed pandemic restrictions.
Of all states and territories, WA recorded the largest increase in household spending, lifting 7.1 percent.
While this 4.3 percent lift YoY is a good indication for retailers, it’s important to note that household spending has actually decreased over a two-year period. Comparing January 2022 to 2020, total household spending dropped 0.6 percent.
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