Overview

• Consumer spending growth slowed to 0.1% in April following consistent growth in the previous months.
• Consumers cut back on goods spending (-0.4%) but still treated themselves and their families during public holidays and school holidays (hospitality up 2.7%). Retail spending went up 0.2% in April, 1.1% in 3-month average terms and 5.9% over the past 12 months.
• Discretionary spending increased 0.8%, offset by a decrease of 0.9% in non-discretionary spending.
• NAB transaction data shows that consumers have prioritised home improvements with a strong growth in household goods (9.4% y/y) and a recent recovery of spending on construction. Meanwhile, personal purchases are still subdued as shown in slow growth in clothing (1.2% y/y) and department stores (0.2% y/y).

Monthly Consumer Spending

• Total spending rose 0.1% m/m in April, with March growth revised to 0.7% (from 0.1%). Overall, total consumer spending increased 1.6% in 3-month average terms and 6.0% over the past 12 months.
• Retail slowed to 0.2% m/m with a strong growth in hospitality (2.7%) offset by a decrease in spending on goods (-0.4%).
• Essential services declined 0.7%, reversing the strong growth last month. This was offset by an increase of 0.9% in other spending.
• Goods spending declined 0.3% while services spending went up 0.6%. Discretionary spending increased 0.8%, while non-discretionary spending decreased 0.9%.

For further details please see NAB Monthly Data Insights (April 2025)