September 15, 2025

NAB Monthly Data Insights (August 2025)

Total consumer spending grew 0.1% m/m in August

Growth in total consumer spending continued in August, albeit at a slower pace relative to the prior month. Total spending increased 0.1% m/m.
In recent months, spending on hospitality and recreation had been boosted by the timing of public holidays and significant sporting events. However, spending in this sector continued in August. Goods spending was negative for a second consecutive month, with the boost from replacement purchases following Cyclone Alfred and NSW floods and end-of-financial-year sales moderating.
Retail spending declined 0.5%, but was offset by large increases in spending on essential services following the expiry of state energy bill rebates.
Spending on goods fell 0.6% while services spending increased 0.7%.
Discretionary spending decreased 0.4% m/m, and non-discretionary spending grew 0.7% m/m. The increase in non-discretionary spending this month was mainly driven by higher spending on essential services including education and utilities.

Monthly Consumer Spending

Total spending continues to grow at a reasonable pace, up 2.1% in 3-month average terms, and up 8.0% over the past 12 months.
NSW was the only state to record a contraction in household spending in August. Meanwhile, smaller states such as NT, SA and TAS led the growth.
Retail spending declined 0.5% m/m, which was driven by a continued decrease in goods retail (-0.7% m/m).
Spending on essential services continued to rise strongly, up 1.9% m/m while spending on other categories edged down 0.2%. With the cessation of energy bill rebates, essential services spending is expected to remain elevated near term.