Dwelling prices across the combined capitals declined for a seventh consecutive month, falling 1.4% in October to be 8.1% below their March 2026 peak.
Fuel and utilities drive August spending: NAB Consumer Spend Trend August 2026 - NAB
15 September 2026
Consumer Spending
Key points
- Consumer spending rose 1.1% in August and 8.7% over the year.
- Non-discretionary spending increased 2.2%, driven by a 12.0% jump in fuel and a 3.2% rise in utilities and telecoms.
- Discretionary spending growth eased to 0.4%, with household goods broadly flat and personal goods down 0.2%.
Australians spent more in August, but the headline lift was driven by higher essential costs rather than a broad acceleration in demand, according to NAB's Consumer Spend Trend.
Total spending rose 1.1% over the month and 8.7% over the year. Excluding fuel, monthly growth was a more moderate 0.6%.
NAB Head of Australian Economics Gareth Spence said this month’s report showed the increasing pressure on households.
“The end of the temporary fuel excise discount, combined with higher fuel prices, was clearly reflected in this month’s spending,” Mr Spence said.
“Fuel spending jumped 12.0%, while utilities and telecoms spending rose 3.2%.
“Excluding fuel, the monthly increase was 0.6%, which provides a better guide to underlying consumer demand.”
Fuel spending was 20.9% higher than a year earlier, while utilities and telecoms spending increased 14.1%. Non-discretionary spending rose 2.2% in August and 9.3% over the year.
Mr Spence said discretionary spending was still growing, but momentum had slowed.
“Discretionary spending rose 0.4% in August, down from 1.2% in July. Services remained resilient, but goods spending softened, with household goods broadly flat and personal goods declining in the month,” Mr Spence said.
“That said, spending remains well up on a year ago across both discretionary and non-discretionary components – this has reflected some resilience in the consumer despite weak confidence and the cost-of-living challenge.”
The cost pressure evident in household spending is also flowing through to businesses. NAB's August Monthly Business Survey showed purchase cost growth edged up to 2.3% at a quarterly rate, while final product price growth eased to 0.8%, widening the pressure on business margins.
“Consumers and businesses are confronting the same cost squeeze,” Mr Spence said.
“Households are paying more for essentials, while businesses are absorbing input costs they have not fully passed on. That combination points to continued pressure on demand and margins in the months ahead.”
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