Indicators

Australia’s Household Spending Strengthens, Backing RBA Caution

Household spending makes up more than half of gross domestic product in Australia. 

Photographer: Brent Lewin/Bloomberg

Australia’s household spending strengthened in January, suggesting the year opened on a positive note while reinforcing the central bank’s cautious approach after cutting interest rates.

Spending advanced 0.4% from the prior month, when it rose a downwardly revised 0.2% and compared with a forecast 0.5% gain, Australian Bureau of Statistics figures showed on Friday. From a year earlier, it climbed 2.9%.