Australian household spending flat in August, below expectations
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The Australian Bureau of Statistics reported that household spending was flat at 0% in August compared with the previous month, below economists' expectations of 0.4% growth, reflecting a slowdown in demand in the economy amid expectations that the Reserve Bank of Australia will resume raising interest rates again at today's meeting. On an annual basis, spending rose 6.8%, also below the expected level of 7.1%. Tom Lay, head of business statistics at the Australian Bureau of Statistics, said spending on recreation and culture was the main factor dragging down overall spending, falling by as much as 1.4% after several months of increased spending driven by major sporting events. However, that decline was partly offset by higher spending in the transport category. The report also said fuel spending rose 8.1% in August after the government reinstated the full rate of the fuel excise, and excluding fuel spending, total household spending would have fallen 0.3%.