(Bloomberg) -- Australia’s household spending exceeded estimates in October, suggesting the final quarter of the year began on a stronger note as consumers bought tickets to international music concerts and sporting events.
Spending advanced 0.8% from the prior month, compared with a forecast 0.3% gain, Australian Bureau of Statistics data showed on Thursday. From a year earlier, it climbed 2.8% versus an expected 2.2% increase.
“Spending rose across all nine categories in October. This was led by recreation and culture, with households snapping up tickets for several major international music concerts and sporting events in 2025,” said Robert Ewing, ABS head of business statistics. “In contrast, goods spending growth was relatively subdued.”
Household spending is an important consideration in policy decisions given consumption accounts for more than half of gross domestic product. The Reserve Bank has repeatedly highlighted the outlook for household spending as a key uncertainty after lifting the cash rate to 4.35% in late 2023 and holding it there all this year.
The RBA meets Tuesday, with economists and markets predicting no change to rates. Governor Michele Bullock said last month that inflation remains too high to consider a cut in the near term.
Her stance may come under challenge though after data on Wednesday showed the economy was only propped up last quarter by government spending and immigration. That prompted traders to bring forward bets on a first RBA rate reduction to April from May.
In seasonally adjusted, current price terms household spending on services rose 1.5% month-on-month, the ABS said.
Thursday’s data comes after retail sales figures, which cover goods spending by households, also exceeded expectations in October.
The ABS intends to cease publication of retail sales data from mid-2025, having switched to household spending, which is a more comprehensive report on consumption.
--With assistance from Shinjini Datta.
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