Australians keep spending on travel, dining and retail – NAB Consumer Spend Trend July 2026

14 August 2026
Consumer Spending

• Consumer spending rose 1.1% in July, with gains across both essential and discretionary categories.

• Discretionary spending outpaced essential spending, led by personal goods, travel and hospitality.

• Total consumer spending is now 7.7% higher than a year ago

Australians continued to spend on retail, travel and dining in July, with NAB's Consumer Spend Trend showing discretionary spending remained resilient despite ongoing  uncertainty and pressure on household budgets from higher fuel prices.  

Consumer spending rose 1.1% over the month, with gains across both essential and discretionary categories. Discretionary spending increased 1.2%, ahead of the 0.8% rise in essential spending.

NAB Chief Economist Dr Sally Auld said the July data pointed to continued resilience in household spending.

“Consumer spending strengthened in July, with Australians continuing to spend on both essentials and discretionary items despite ongoing cost-of-living pressures,” Dr Auld said.

“What's notable is the strength in categories typically associated with discretionary spending, including retail, travel and hospitality. 

“Households are still spending on things they want to do, not just things they need to buy. That suggests consumer demand remains reasonably resilient.”

The strongest discretionary category in July was personal goods, with spending up 2.0% in the month and 10.5% over the year. Spending on hotels, travel and transport rose 1.9%, while spending at cafes and restaurants increased 1.1%.

Dr Auld said the breadth of spending growth was notable despite weak consumer confidence.

“Personal goods was the strongest discretionary category in July, with broad-based growth across clothing, footwear, pharmaceuticals and cosmetics, recreation goods and department stores,” Dr Auld said. 

“We also saw stronger spending on cafes and restaurants, as well as hotels, travel and transport.

“While household budgets remain under pressure, the July data suggest consumers are continuing to engage with the economy beyond essential spending alone.” Dr Auld said.

Consumer spending was 7.7% higher than a year ago, with annual growth in discretionary spending supported by personal goods, cafes and restaurants and other discretionary services. 

Read the full NAB Consumer Spend Trend - July 2026 (PDF, 809KB)