Household spending rose in June but this was largely due to a spike in Electric Vehicle (EV) sales and the resumption of travel delayed by the Iranian war.
Australian Bureau of Statistics (ABS) seasonally adjusted figures show that household spending rose 0.8 percent in June 2026.
This followed a rise of 1.2 percent in May and a fall of 1.0 percent in April.
ABS head of business statistics Tom Lay said the June rise was driven by discretionary spending, particularly in transport, recreation and culture.
“New vehicle sales were the standout within transport this month, driving a 3.0 percent (spending) rise,” Mr Lay said.
“Electric vehicle sales increased significantly over the year and have continued that trend in June, accounting for a growing share of overall new vehicles sales as households adjust their spending behaviour in response to rising fuel prices.”
Mr Lay said air travel was the second largest contributor to transport spending, with a return to pre-Middle East conflict levels.
Fuel spending eased from the March peak with the reduction in the fuel excise duty from April 1 to June 30 still flowing to households when the data was collected.
A special data set collected by the ABS suggested fuel volume sales were up 7.8 percent and the price was down 10.9 percent.
Recreation and culture spending was up 1.4 percent in June, with spending on electronic goods, performing arts, live entertainment, gambling and major sporting events all strong.
“Some of the rise in spending on performing arts and live entertainment reflect advanced purchases of tickets for future performances,” the ABS said.
“In the household spending indicator this activity is recorded as spending at the point of payment rather than when the service is consumed.”
Household spending volumes (as distinct from dollar value) rose 2.4 percent compared to the June 2025 quarter.
While growth remained “solid”, it was lower than the 2.7 percent annual increase recorded in the March 2026 quarter.
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