The CommBank Household Spending Intentions (HSI) Index fell 1.7 per cent in June, as consumer activity continued to weaken across a range of categories led by declines in home buying, health & fitness, entertainment and travel.
Home buying spending intentions declined 26.2 per cent in the month. Home buying intentions have been volatile through much of 2023, reflecting increases in Reserve Bank of Australia (RBA) interest rates, a lack of stock available on the market and higher prices.
Discretionary spending continued to weaken, with entertainment spending down 5.4 per cent on May and 15.4 percent on the year. Travel spending fell a further 2.5 per cent after May’s decline, with spending on hotels, motels & resorts, trailer parks & campgrounds and sport & recreation clubs all down. This was partly offset by spending increases on travel agents, airlines, cruise ships and airports as families took overseas trips during the school holidays.