The latest household spending data shows a jump for the month of May, increasing 0.9% from the previous month to a total $76.4 billion, in seasonally adjusted terms, with spending potentially fuelled by end of financial year (EOFY) sales and positive consumer sentiment post the May RBA rate cut.
The data, released today from the latest ABS Monthly Household Spending Indicator (MHSI), saw the largest monthly increases recorded in discretionary spending categories: clothing and footwear (+3.7%), transport (1.7%), and miscellaneous goods and services (+1.3%).
How did households spend in May?
The ABS data reveals households were much busier in May, with seven of the nine categories reporting an increase for the month. The jump in spending comes after a relatively flat April, which only saw an increase of 0.1% for the month.
While early EOFY sales shopping and potential travel bookings for the July holidays could have driven the increases, the RBA’s cash rate cut of 0.25 percentage points may have also fuelled positive consumer sentiment and contributed to the spending.
The categories of food and alcoholic beverages and tobacco were the only two recording drops in spending in the month of May.
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| Monthly Household Spending Indicator: May 2025 | |||
|---|---|---|---|
| Category | May-25 | Change month-on-month | Change year-on-year |
| Total | $76.4 billion | +$651.2 million
+0.9% |
+$3.1 billion
+4.2% |
| Food | $12.1 billion | -$15.3 million
-0.1% |
+$602.6 million
+5.2% |
| Alcoholic beverages and tobacco | $3.1 billion | -$44.6 million
-1.4% |
-$544.1 million
-15.1% |
| Clothing and footwear | $4.3 billion | +$150.4 million
+3.7% |
+$90.2 million
+2.2% |
| Furnishings and household equipment | $5.3 billion | +$30.9 million
+0.6% |
+$170.8 million
+3.3% |
| Health | $8.9 billion | +$98.0 million
+1.1% |
+$689.8 million
+8.4% |
| Transport | $12.7 billion | +$208.8 million
+1.7% |
+$211.8 million
+1.7% |
| Recreation and culture | $13.1 billion | +$58.8 million
+0.5% |
+$673.2 million
+5.4% |
| Hotels, cafes and restaurants | $9.7 billion | +$72.8 million
+0.8% |
+$622.1 million
+6.9% |
| Miscellaneous goods and services | $7.2 billion | +$91.5 million
+1.3% |
+$553.6 million
+8.3% |
Source: ABS Monthly Household Spending Indicator, May 25, seasonally adjusted data.
What our research reveal about Australians’ spending habits
- 47% of Australians shopping in EOFY sales were planning to buy clothing or footwear, followed by 32% who were keen to buy appliances
- 23% of those who planned to shop in the EOFY sales planned to buy items for travel and flights
- 12% of Australians will purposefully sign up to retailer newsletters or apps to get the best EOFY deal
How did spending track across the states?
Spending rose in every state and territory, with the Northern Territory’s monthly increase of 1.2% leading the way. In dollar terms, Queensland reported the highest spend for the month of May.
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| Monthly Household Spending Indicator: May 2025, state | |||
|---|---|---|---|
| State | May-25 | Change month-on-month | Change year-on-year |
| New South Wales | $24.1 billion | +$208.1 million
+0.9% |
+$805.1 million
+3.5% |
| Victoria | $18.6 billion | +$126.3 million
+0.7% |
+$418.7 million
+2.3% |
| Queensland | $15.9 billion | +$151.9 million
+1.0% |
+$834.7 million
+5.5% |
| South Australia | $5.1 billion | +$41.2 million
+0.8% |
+$203.0 million
+4.1% |
| Western Australia | $8.9 billion | +$92.2 million
+1.0% |
+$670.1 million
+8.1% |
| Tasmania | $1.5 billion | +$8.9 million
+0.6% |
+$36.8 million
+2.4% |
| Northern Territory | $819.3 million | +10.0 million
+1.2% |
+$62.6 million
+8.3% |
| ACT | $1.4 billion | +$12.7 million
+0.9% |
+$38.9 million
+2.9% |
Source: ABS Monthly Household Spending Indicator, May 25, seasonally adjusted data.
EOFY sales a likely culprit for rise in spending
Canstar Blue spokesperson, Eden Radford, says, “Spending from households certainly picked up in May, with many Australians likely hoping to make the most of early EOFY sales, or perhaps feeling buoyed by the February and May rate cuts delivered by the RBA.”
“May’s increase in discretionary spending is almost a ‘180’ to the figures in April, which showed households were holding back on things like clothing and footwear, potentially hoping for a sign of budget relief before buying anything new.
“Looking ahead to June, the EOFY sales period will likely play a large part in the spending figures, particularly as many households will hold out for the event to purchase larger items like fridges, or big appliances.”
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