Economic Buzz: Australian household spending flat in August

Australian household spending was flat in August, missing the 0.4% rise economists expected, according to the Australian Bureau of Statistics. The result follows a 1.1% jump in July. Annual growth slowed to 6.8% from 7.0%.

The detail was mixed. Only three of nine categories rose: transport gained 2.3%, hotels, cafes and restaurants rose 0.8%, and miscellaneous spending added 0.3%. The biggest falls were in recreation and culture, down 1.4%, and in clothing and footwear and alcohol and tobacco, each down 1.0%.

Goods spending rose 0.3%, helped by motoring goods and vehicle purchases, while services fell 0.3% on weaker recreation and cultural services, health services and personal care. Discretionary spending slipped 0.3%, while non-discretionary spending rose 0.6%, led by motoring goods and rail and road transport.

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