Consumer spending holds up in June, but outlook remains uncertain - NAB

Key points

  • Total spending rose 1.2% in June and 6.8% over the year.
  • Excluding fuel, spending was up 1.4% in June and 7.1% year-on-year.
  • Discretionary spending led the monthly rise, while non-discretionary spending was broadly unchanged.

Australian consumer spending rose 1.2% in June and 6.8% over the year, while spending excluding fuel was up 1.4% in the month and 7.1% year-on-year, according to the latest NAB Consumer Spend Trend.

Spending rose for a second consecutive month, led by discretionary spending. Discretionary spending increased 1.9% in June, with spending rising across all categories except hospitality. Non-discretionary spending was broadly unchanged, with higher health and education and food spending offset by lower fuel spending.

Despite the strong June result, spending growth eased slightly in the June quarter, to 1.5% from 1.7% in the March quarter. Growth over the year was driven by essential spending, particularly utilities and telecoms as energy bill rebates ended. Discretionary spending grew 6.6% over the year.

NAB Chief Economist Sally Auld said the June data suggested consumer spending had held up better than expected, but the next few months would be important in assessing the underlying trend.

“Consumer spending held up in June, and there could be a few reasons for that,” Auld said.

“There has been some support for household budgets from policy interventions, including the fuel excise cut and free or reduced public transport fares in some states. Retail petrol prices were lower in June, which may have also helped to support spending in the month.

“The next few months of spending data will be important, given a variety of influences at play. There is a chance that falling house prices in major capital cities dampens the consumption story a little, and the recent escalation in the Middle East conflict may pressure petrol prices higher which could slow discretionary spend.”

NAB expects consumer spending growth to slow over the rest of the year as momentum in the broader economy moderates.

Find more detail in the NAB Consumer Spend Trend – June 2026. (PDF, 679KB)

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