The CommBank Household Spending Insights (HSI) Index rose 0.9 per cent in March, buoyed by a lift in recreation and hospitality spending off the back of Melbourne Grand Prix and the return of the winter football codes.
Modest gains were seen across all 12 spending categories for the month, led by education which surged 4.3 per cent amid rising tuition fees and the start of the academic year.
Notable uplifts were also seen in Insurance (+1.6 per cent), Recreation (+1.4 per cent), Hospitality (+1.2 per cent), the latter showing its first lift since December.
“While it’s encouraging to see a rebound in spending this March, particularly across discretionary categories like Recreation and Hospitality, it’s premature to call this a turning point, as the overall pace of spending growth remains lower than the final quarter of 2024,” CBA Senior Economist Belinda Allen said.
Renters continue to show the weakest spending growth, with the annual rate of spending in original per capita terms rising by 2 per cent, well below owners with a mortgage (+3.2 per cent) and those who own their home outright (plus 3.5 per cent).
“Queensland saw the softest growth rate in March, with spending rising just 0.1 per cent following ex-tropical cyclone Alfred,” Ms Allen said.
The CommBank HSI Index tracks month-on-month data at a macro level and is based on deidentified payments data from approximately seven million CBA customers, comprising roughly 30 per cent of all Australian consumer transactions.
