A series of RBA interest rate hikes this year have intensified concerns among market watchers about the household budget squeeze and the flow-on impact on the property market.

The Household Spending Indicators released by the Australian Bureau of Statistics provide insights into how consumers have reacted to the rate hikes so far.

Highlights:  

  • For the September quarter, household spending rose 6.7% in value terms and 3.2% in volume terms from a year ago.
  • Discretionary spending growth, which is a gauge of consumer demand, accelerated from 5.7% to 7.1%.
  • However, reflecting the housing market downturn, spending on furnishings and household equipment slowed from 5.1% to 4.2%.

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