Australian household spending was flat last month as consumers took a breather from a spending spree in the final quarter of 2024, the Commonwealth Bank of Australia said in a Thursday report.
The CommBank Household Spending Insights (HSI) Index was unchanged at 153.4 in January, with "modest" spending increases in six of the 12 spending categories.
"The flat January HSI result was somewhat expected following the spike in spending we saw in the last three months of 2024 off the back of Black Friday, Cyber Monday, and Boxing Day sales," said Senior Economist Belinda Allen.
"Essentials made up the three highest spending categories in the month as consumers pulled back on discretionary spending," Allen added.
With the Reserve Bank anticipated to cut the interest rate at its Feb. 17 to 18 meeting, businesses will likely see improved spending in the coming months, the bank said.
CommBank anticipates a total of 100 basis points of monetary policy easing throughout the year.
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