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Household spending drops 7.3% in August as mid-year sales boom ends.
The Beforepay Cost of Living Index for August 2024 is $65.74.
Australian consumer spending saw a significant decline in August, with the average daily spend dropping by 7.3% to $65.74, down from $70.55 in July, according to the latest Beforepay Cost of Living Index. This decrease reflects a shift back to more conservative spending patterns following the mid-year sales and school holidays, similarly seen over the same period in 2023.
Year-on-year, the Index still shows a 6.2% increase from $61.92 in August 2023, highlighting that overall spending remains higher compared to the previous year, likely due to ongoing inflationary pressures.
In August, the most substantial reductions were seen in shopping and durable goods. Daily average spend fell by 15.7% for shopping, down to $8.81 from $10.19, and 13.1% for durable goods, down to $7.79 from $8.81, both of which reflect sharp declines as consumers scaled back discretionary purchases after July’s spending surge. Entertainment and leisure spending also fell by 7% to $4.83 from $5.17, while fitness and health-related spending dropped by 2% to $3.02.
In non-discretionary expenses, utilities also saw a notable decrease of 8.1% in August. Daily average spend for the category dropped to $6.68 from $7.22, possibly as households adjust usage at the end of winter.
Food and drink expenses were down 5.2% month-on-month to $11.42, while groceries, which had seen minimal changes in previous months, decreased by 4.6% in August to $15.12. Petrol and auto expenses, also typically stable, saw a slight decline of 2.4% to $8.07.
Below is a full month-by-month breakdown over the last 12 months. See sub-category descriptions here.
Cost Of Living Sub-Category Descriptions
Below are brief descriptions that outline the type of expenses applicable to each spending category.
Groceries
Grocery stores where raw vegetables and meat are sold.
Food & Drink
Any restaurant, pub or vendor that sells food that is not prepared or processed, i.e. not groceries.
Petrol & Auto
Any spending on petrol, car maintenance and car accessories.
Shopping
Spending on non-edible, non-durable goods, i.e. clothing, shoes, consumer packaged goods.
Utilities
Spending on electricity, gas (home) and phone.
Entertainment & Leisure
Movie streaming, tickets, mobile and console gaming, hobbies, bookshops and other recreation expenses.
Durable Shopping
Spending on long lasting products, such as white goods.
Fitness & Health
Any expenses on gyms, health insurance and chemists
Have questions? Reach out to mediaenquiries@beforepay.com.au for more information.
About the Beforepay Cost of Living Index
The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories. As of March 2024, the average annual individual Beforepay customer gross income was $65,783 (counting only the main source of income) with a broadly representative geographic and gender breakdown. The data may vary depending on the main bank account linked with Beforepay. To the maximum extent permitted by law, Beforepay and its related bodies corporate, make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this article and do not accept any liability for any loss whatsoever arising from the use of this article or its contents or otherwise arising in connection with it.The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories.
