Australian household spending increase driven by electric vehicle sales and travel
Australian household spending rose by 0.8 percent in June, largely driven by a surge in electric vehicle sales and a recovery in air travel. Economists suggest this moderate growth is unlikely to trigger an interest rate hike by the Reserve Bank of Australia.
Why it matters
Consumer spending trends are key indicators for central bank policy and reflect how households are adapting to global economic pressures like high fuel prices.
The ABS said the increase in household spending was due to a rise in new vehicle purchases. ( ABC News: Sharon Gordon )
Household spending rose 0.8 per cent in June, powered by new car purchases.
The ABS said consumers splashed out on electric vehicles amid high petrol prices due to the war in Iran.
An economist says the moderate pick-up in spending will not influence the RBA to hike the cash rate next week.
Link copied Share Share article Australian households have spent more on transport and recreation and culture in June, according to new data from the Australian Bureau of Statistics (ABS).
The government agency said spending increased by 0.8 per cent month-on-month, with much of that pick-up attributed to a 3 per cent rise in transport spending.
ABS head of business statistics Tom Lay said this was reflected by a surge in new vehicle sales.
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