Australia’s consumer spending lifted in January, buoyed by tennis and other summer events, private data showed, though expectations of higher borrowing costs may curb momentum in the months ahead. Commonwealth Bank of Australia’s latest figures showed household spending rose 0.5% in January, extending the run of growth to 16 consecutive months. The Australian Open and a solid job market underpinne...
Australia’s consumer spending lifted in January, buoyed by tennis and other summer events, private data showed, though expectations of higher borrowing costs may curb momentum in the months ahead. Commonwealth Bank of Australia’s latest figures showed household spending rose 0.5% in January, extending the run of growth to 16 consecutive months. The Australian Open and a solid job market underpinned the rise, with recreational spending rising 1% across the month. Australia Will Hike Again If Inflation Entrenches, Bullock Warns That pace is likely to soften as stubborn inflation reinforces bets for at least one more interest rate hike this year. Wage growth is also set to ease as weak productivity growth continues to add to labor cost pressures, according to the report. “While consumers have continued to spend, higher interest rates and easing income growth are likely to slow that momentum as the year progresses,” CBA Senior Economist Ashwin Clarke said in the report. Utilities recorded the biggest monthly gain, rising 3.7% across January as households faced higher electricity bills following the scaling back of federal energy rebates. Listen and follow The Bloomberg Australia Podcast on Apple , Spotify , YouTube or wherever you get your podcasts.