Travel bookings, fitness clubs and sporting goods stores have boosted household spending in June, according to new bank data, but the annual trend is still painting a picture of a cautious consumer.
The minor lift in Commonwealth Bank’s latest monthly household spending insights index — which tracks about seven million customers — was driven by increased spending on recreation (up 3.2 per cent) and hospitality (up 2.1 per cent).
CBA on Thursday said online travel bookings, fitness clubs and gyms, and sporting goods stores bumped up recreation spend, but on an annual basis this category had only seen a 0.2 per cent growth.
The growth rate for CBA’s household spending insights index remains subdued at 3.9 per cent for the year.
Spending on categories such as insurance (up 8.8 per cent), utilities (up 6.8 per cent) and transport (up 5.7 per cent) posted the biggest jumps in the year to June, suggesting consumers were still prioritising essential services.
The June report also revealed the continued spending differences across all home ownership types.
Renters continued to be challenged, with spending declining 0.9 per cent in the year to June compared with spending increases for those with a mortgage (up 1.5 per cent) and outright owners (up 2.1 per cent).
CBA chief economist Stephen Halmarick said while consumer spending remained relatively weak, the path of monetary policy would be dependent on several key pieces of economic data in the coming weeks.
“While it was somewhat surprising to see household spending rise for the second month in a row, we have witnessed a significant disparity in spending behaviours across home ownership categories, as renters pull back on spending in the year to June while mortgage holders and outright owners have increased spending,” Mr Halmarick said.
“This suggests younger Australians, who are more likely to be renting, are tightening their wallets and likely spending more on essentials, given these are the fastest growing spending categories so far this year.”