Monthly household spending is still increasing overall, but it’s a different story depending on whether you own your home or rent, a new report shows.
The monthly CommBank Household Spending Insights Index found renters’ spending has declined 0.9 per cent in the past year, while homeowners’ spending has increased.
The increase was just over 2 per cent for those who own their homes outright, and slightly lower at 1.5 per cent for those with a mortgage.
CBA Chief Economist Stephen Halmarick said it was “somewhat surprising” to see household spending on the rise for a second month in a row, but that the disparity in spending behaviours was of note.
“This suggests younger Australians, who are more likely to be renting, are tightening their wallets and likely spending more on essentials, given these are the fastest growing spending categories so far this year.”
The index recorded a 0.6 per cent increase in June, with growth mostly driven by bumps in recreation and hospitality spending.
Recreations saw a 3.2 per cent monthly increase, driven by travel bookings and gym spending, but on an annual basis, recreational spending growth is at only 0.2 per cent. As for hospitality, the 2.1 per cent bump was led by pubs and food delivery services, with a solid annual increase of 3.8 per cent.
Annual spending index growth rate “remains subdued” at 3.9 per cent.