Australian household spending rebounded in the first month of 2026, buoyed by a significant appetite for services despite a softening market for major goods.
According to seasonally adjusted figures released today by the Australian Bureau of Statistics, national spending rose 0.3% in January, reversing a 0.5% decline recorded in December 2025.
The recovery highlights a resilient consumer base, with nominal spending sitting 4.6% higher than in January 2025.
Tom Lay, ABS Head of Business Statistics, noted that growth was evident across five of the nine primary spending categories.
"Household spending returned to growth in January," Lay said, attributing much of the momentum to the services sector, which climbed 1%.
The growth was primarily fuelled by "other services," including digital streaming and travel agencies, alongside increased expenditure on dental and health services.
While essential spending rose 0.8%—driven by healthcare and vehicle maintenance—discretionary spending saw a more modest 0.1% lift.
The sluggishness in non-essentials was weighed down by a 0.3% drop in goods, as Australians pulled back on motor vehicle purchases and recreational items.
Geographically, the recovery was uneven. Tasmania led the nation with a 0.6%
monthly rise, while New South Wales and Victoria both followed with 0.5% growth.
Conversely, the Northern Territory experienced a sharp 2.3% contraction. Despite the regional variances, the data suggests a stabilising trend as the new year begins.