Consumer spending holds amid cost pressures - NAB
15 June 2026
Economy and Markets Consumer Spending
Australian consumer spending remained steady in May, supported by a recovery in discretionary categories, according to the latest NAB Consumer Spend Trend.
Total spending rose 1.1% in May, rebounding from the April pullback, and was 6.5% higher over the year. Excluding fuel, spending rose 1.6% in the month and 6.6% over the year.
Discretionary spending rose 2.4% in May, supported by stronger travel, hospitality and other discretionary services spending. Non-discretionary spending fell 0.9%, with fuel spending down 9.1% as prices eased further. Food retail spending rose 0.9% in May and 4.7% over the year, reflecting ongoing pressure from grocery costs.
NAB Head of Australian Economics Gareth Spence said the data showed consumers had not fallen away, despite the ongoing pressure from essential costs.
“Consumer spending rebounded in May and remains positive over the year, suggesting household demand has been resilient despite ongoing cost pressures,” Spence said.
“The monthly lift was supported by a recovery in discretionary spending, including travel, hospitality and other services. At the same time, grocery spending continues to grow at an elevated annual pace, highlighting the pressure essential costs are placing on household budgets.
“Fuel spending fell sharply in May as prices eased, providing some temporary relief. However, this may unwind when the fuel excise cut expires on 30 June.”
“Overall, consumer spending has somewhat resilient despite weak consumer sentiment and subdued business confidence. While spending growth has slowed from the pace seen late last year, the data suggest households have not pulled back sharply,” Spence said.
Find more detail in the May NAB Consumer Spend Trend below.
NAB Consumer Spend Trend May 2026 (PDF, 634KB)
ENDS
For all media enquiries, please contact the NAB Media Line on +61 3 7035 5015
