The latest ABS Monthly Household Spending Indicator (MHSI), released today, shows spending for the month of August increased slightly compared to the previous month, with $77.4 billion recorded, in seasonally adjusted terms.
The category of transport, which includes the purchasing of flights, travel and new cars, contributed the largest increase to spending in both dollar and percentage terms, with the data showing households spent a record high of $13.0 billion in the month.
This data comes as new research from Canstar Blue reveals Australians are now spending an average of $47,900 on a new car – 16% more than they were a year ago.
How did households spend in August?
Miscellaneous goods and services also made a large contribution to August’s spending figures, increasing 0.8% compared to the previous month, equivalent to $58.7 million.
Recreation and culture had the largest month-on-month drop in spending, with August figures $125 million lower than July.
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Monthly Household Spending Indicator: August 2025
| Category | Aug-25 | Change month-on-month | Change year-on-year |
|---|---|---|---|
| Total | $77.4 billion | +$67.9 million
+0.1% |
+$3.7 billion
+5.0% |
| Food | $12.3 billion | +$14.8 million
+0.1% |
+$725.2 million
+6.3% |
| Alcoholic beverages and tobacco | $2.9 billion | -$26.8 million
-0.9% |
-$657.1 million
-18.5% |
| Clothing and footwear | $4.3 billion | +$22.6 million
+0.5% |
+$117.5 million
+2.8% |
| Furnishings and household equipment | $5.4 billion | -$6.7 million
-0.1% |
+$192.9 million
+3.7% |
| Health | $9.1 billion | +$2.2 million
+0.02% |
+$669.7 million
+8.0% |
| Transport | $13.0 billion | +$99.9 million
+0.8% |
+$683.0 million
+5.6% |
| Recreation and culture | $13.2 billion | -$125.0 million
-0.9% |
+$760.2 million
+6.1% |
| Hotels, cafes and restaurants | $9.8 billion | +$28.4 million
+0.3% |
+$604.9 million
+6.6% |
| Miscellaneous goods and services | $7.5 billion | +$58.7 million
+0.8% |
+$613.5 million
+8.9% |
Source: ABS Monthly Household Spending Indicator, August 2025, seasonally adjusted data. Prepared by Canstar Blue.
What does research from Canstar Blue reveal about Australians’ spending habits?
In a survey of more than 3,800 Australians who have purchased a new car in the last five years, it was revealed:
- The average spend on a new vehicle is $47,900, up 16% from $41,200 in 2024.
- Over half of buyers (58%) purchased their new car outright, while of the remainder:
- 14% financed through a dealer;
- 10% took out a personal loan;
- 8% paid with a mix of their own cash and a loan;
- The remaining 10% either used an insurance payout, gifted money, or other.
- Petrol remains the dominant fuel type at 68% of new cars purchased, followed by diesel at 16%, hybrid at 12% and electric at 4%:
- More buyers in the millennial generation purchased electric and hybrid vehicles compared to any other generation.
- The main deciding factor in the purchasing decision for older buyers is the brand name, while younger buyers consider price the most important factor.
- The 2025 Canstar Blue Customer Satisfaction Awards for Cars, which were determined by the ratings of the thousands of consumers surveyed, saw Great Wall receive three awards, while MG and Tesla were also winners.
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2025 Canstar Blue Most Satisfied Customers Awards – Cars
| Award | Winner |
|---|---|
| Overall Satisfaction | Great Wall |
| Value for Money | Great Wall |
| Sedans | Tesla |
| Small Cars | MG |
| SUV | Great Wall |
Canstar Blue spokesperson, Eden Radford, says, “Households may have only increased their spending ever so slightly in August, but the continued month-on-month increase is evidence they are easing the purse strings.
“The categories that recorded the largest monthly drops are those that would be most impacted by seasonal activities and spending. With summer approaching, there’s no doubt we’ll see an uptick, particularly for the category of recreation and culture.
“Transport, which includes the purchasing of flights, travel and new cars, drove August’s spending figures up and looking at Canstar Blue’s new research on new vehicle spending, it all adds up.
“Aussies are spending, on average, 16 per cent more than they were a year ago for a brand new car, with the majority willing to pay outright for their new vehicle.
“Whether it’s a new SUV, a family car, or an electric vehicle that has all the latest technology, a new car purchase is no small buying decision, so taking the time to understand what vehicle truly delivers value is money well spent.”
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